Final answer:
The statement is true; free trade agreements aim to standardize duties and reduce barriers to trade, promoting the free flow of goods across partner borders. These agreements, like NAFTA, CAFTA, and others, have been strongly supported by economists to facilitate fair competition and economic growth.
Step-by-step explanation:
True or False: The ultimate goal of a free trade agreement is to have standardized duties on goods that cross borders between the partners. The answer to this statement is true.
Free trade agreements aim to reduce barriers to trade such as tariffs, import quotas, and nontariff barriers, promoting the free flow of goods across borders.
Virtually all economists support policies that reduce barriers to trade, including major free trade agreements such as NAFTA, CAFTA, GATT, and several EU treaties.
These agreements have helped to virtually eliminate trade restrictions among member countries, enabling more efficient and cost-effective international commerce. The goal is not just to standardize duties but also to create a more level playing field for all partner countries, encouraging fair competition and economic growth.
The concept of "spaghetti bowl" as described by economists refers to the complexity of various overlapping trade agreements. Despite this complexity, the overarching goal remains clear: to promote freer trade with reduced restrictions that would otherwise hinder international commerce.
A free trade association, a common market, and an economic union are different levels of regional trade agreements with increasing integration and standardization of policies, the latter two even requiring a common external trade policy and coordinated fiscal and monetary policies respectively.