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An agreement between countries to encourage free trade and promote thegroup's collective economic interests is an__

O A. comparative advantage
OB. trade bloc
O C. absolute advantage
D. trade barrier

1 Answer

1 vote

Answer:

OB. trade bloc.

Step-by-step explanation:

A trade bloc is when a group of countries come together and form or create an agreement that reduced or even eliminates any restrictions on trade between themselves. This type of intergovernmental agreement allows the participating countries to have cordial economic relationships with each other.

Through this type of agreement, the regional barriers to international trade are open or given fewer restrictions to allow or encourage free trade between themselves. Moreover, it also allows them to trade among themselves and prevent the non-members from participating in any economic trade with the member nations.

Thus, the correct answer is option B.

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