7
QuizMultiple Choice

6.5 Trade Agreements

Question 7 • * HSA 26-27 Economics

What is the most common reason why countries create trade agreements?

Answer
A
to limit imports
B
to create free trade
C
to establish quotas
D
to decrease trade

Explanation

Countries most often create trade agreements to make trade between them easier, commonly by reducing or removing tariffs and other barriers. This promotes free trade by allowing goods and services to move more freely across borders. Limiting imports, establishing quotas, or decreasing trade would restrict commerce rather than encourage it.

AI-written and checked against the verified answer.

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