A free-trade area is defined as:
A) a trading agreement that allows for free flow of resources.
B) a trading agreement that binds member countries to have a uniform tariff on other countries.
C) a trading agreement that lets countries rely on subsidies on domestic production.
D) a trading agreement in which a group of countries voluntarily agree to remove trade barriers between themselves.

Question

Quizplus · Accepted Answer

A free-trade area is a trading agreement among a group of countries in which they agree to remove trade barriers between themselves, such as tariffs or quotas. This allows for greater free flow of goods and services between member countries. However, each member country is free to maintain its own trade policies with non-member countries.

A Free-Trade Area Is Defined As