17
QuizMultiple Choice

6.5 Trade Agreements

Question 17 • * HSA 26-27 Economics

What is one reason two countries may sign a treaty to create a direct agreement with one another?

Answer
A
to establish barriers to trade
B
to cut taxes
C
to collect more taxes
D
to limit trade opportunities for competing companies

Explanation

A direct treaty between two countries can reduce or remove taxes on goods traded between them, making trade easier and less expensive. This is why the best choice is “to cut taxes.” Establishing barriers or limiting trade opportunities would work against the usual purpose of such an agreement.

AI-written and checked against the verified answer.

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