GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Free-trade zones
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Free-trade agreements
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non-tariff alliances
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Common markets
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Detailed explanation-1: -A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
Detailed explanation-2: -FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries. Australia has 17 FTAs with 29 countries. Australia is negotiating new bilateral and regional FTAs.
Detailed explanation-3: -North American Free Trade Agreement (NAFTA), controversial trade pact signed in 1992 that gradually eliminated most tariffs and other trade barriers on products and services passing between the United States, Canada, and Mexico.