Question

Trade agreements are helpful because they allow countries to

trade for necessary goods.
increase trade tax revenue.
influence foreign trade.
help create new trade barriers.

Answer 1

Correct choices:
- trade for necessary goods.
- influence foreign trade.

Why:
- Trade agreements lower barriers and make it easier for countries to obtain needed goods and set rules that influence foreign trade.
- They typically lower tariffs, so they do not generally increase trade tax revenue (tariff income usually falls, though overall tax revenue can change for other reasons).
- They are intended to reduce barriers among members, not create new ones (although preferential deals can disadvantage non-members — but that’s not the general purpose).