Which of the following is an advantage of the establishment of free-trade agreements?
A)They protect domestic industries and jobs by taxing goods imported from outlying regions.
B)They protect the well-being of people by restricting the flow of goods being exported from their country.
C)They reduce the impact of globalization by preventing the loss of capital from a country.
D)They provide managers with a threat-free environment to work within.
E)They provide manufacturing organizations with opportunities to reduce production costs.

Question

Quizplus · Accepted Answer

The establishment of free-trade areas creates an opportunity for manufacturing organizations because it lets them reduce their costs.They can do this either by shifting production to the lowest-cost location within the free-trade area or by serving the whole region from one location rather than establishing separate operations in each country.

Which of the Following Is an Advantage of the Establishment