What is a key feature of free trade agreements?

Study for the University of Toronto SOC100H1 Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Free trade agreements are designed to promote smoother and more efficient trade between countries by reducing or eliminating barriers such as tariffs and quotas on imported goods. This key feature facilitates greater access to markets, allowing for an increase in the volume of trade by making it cheaper and easier for countries to exchange goods and services. By lowering or removing trade restrictions, these agreements aim to encourage economic growth, enhance competition, and create more opportunities for businesses and consumers in the participating nations.

In contrast, increasing tariffs, restricting trade, or imposing quotas typically work against the principles of free trade by creating obstacles in the flow of goods and services across borders. Each of these alternatives contradicts the main purpose of free trade agreements, which is to foster an open trading environment.

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