Question

Why do states enter into trade agreements?

1. Used to gain access to other country's markets,
2. reduce trade barriers and
3. stimulate trade in new goods and services

Answer 1

States enter into trade agreements to gain access to new markets, reduce trade barriers, and stimulate trade in new goods and services.

Step-by-step explanation:

States enter into trade agreements for several reasons. Firstly, trade agreements provide access to other country's markets, allowing states to export their goods and services to a larger consumer base. This can lead to increased economic growth and job opportunities.

Secondly, trade agreements are negotiated to reduce trade barriers such as tariffs, quotas, and other restrictions. By lowering these barriers, states aim to promote free trade and create a level playing field for businesses, ultimately benefiting consumers with better products and lower prices.

Lastly, trade agreements can stimulate trade in new goods and services by creating opportunities for collaboration and innovation. When countries come together to establish favorable trading conditions, it encourages businesses to explore new markets and develop new products and services.