If Chile and Mexico form a free trade agreement, the welfare of the two countries will necessarily increase.

Question

Quizplus · Accepted Answer

While a free trade agreement can lead to increased trade, efficiency, and economic growth, it does not guarantee an increase in welfare for both countries. The actual impact depends on various factors such as the structure of the economies, the terms of the agreement, and how gains are distributed within each country.

If Chile and Mexico Form a Free Trade Agreement, the Welfare