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  • 26-03-2020
  • Business
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A free-trade agreement between two countries results in increased trade between the countries because barriers to trade are removed. (1 point)True False

Respuesta :

Samawati
Samawati Samawati
  • 26-03-2020

Answer:

True

Explanation:

A free trade agreement consists of deliberate actions by countries to increase the volume of trade between them by reducing trade barriers. A  trade agreement entails a reduction or elimination of tariffs and other economic collaboration the encourage cross border trade.  

A free trade agreement gives rise to a free trade zone. Goods and services move a lot freely in a free trade zone. There is an increased movement of capital and other factors of production between the two countries.

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