QUESTION IMAGE
Question
how do trade agreements of international organizations affect trade?
by incentivizing the development of trade policies
by eliminating tariffs and taxes on imports and exports
by encouraging countries to provide open access to trade
by helping smaller countries compete in the world market
To determine the correct answer, we analyze each option:
- Option "by incentivizing the development of trade policies": Trade agreements' main effect on trade is not primarily about incentivizing policy development but about facilitating trade.
- Option "by eliminating tariffs and taxes on imports and exports": While some trade agreements reduce tariffs, complete elimination is rare and not the core way they affect trade.
- Option "by encouraging countries to provide open access to trade": International trade agreements (like those from WTO, regional blocs) aim to promote open trade by reducing barriers, setting rules for fair trade, etc. This is a key way they impact trade.
- Option "by helping smaller countries compete in the world market": Trade agreements can have this as a secondary effect, but the primary way they affect trade is by promoting open access.
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C. by encouraging countries to provide open access to trade (Note: Assuming the options are labeled A - D with A being "by incentivizing...", B "by eliminating...", C "by encouraging...", D "by helping...")