Which of the following is true of regional trade agreements?
A) They enforce regional restrictions on the cross-border flow of resources and reinforce import-tariffs.
B) They expose companies based in one member country to increased competition from companies in other member countries.
C) They hinder the spread of globalization by setting up trade barriers between different countries of the same region.
D) They provide manufacturing organizations with fewer opportunities to reduce costs and provide managers with fewer threats.
E) They are created to reduce overall tariffs on goods that flow within a country and increase tariffs on goods that flow between regions.

Question

Quizplus · Accepted Answer

The establishment of free-trade areas creates an opportunity for manufacturing organizations because it lets them reduce their costs. Some managers view regional free-trade agreements as a threat because they expose a company based in one member country to increased competition from companies based in the other member countries.

Which of the Following Is True of Regional Trade Agreements