Question

International trade organizations promote free trade by encouraging countries to

Answer 1

Lift tariffs ........................

Answer 2

Answer: The correct answer is C. “Limit their protectionism policies.”

Explanation:

International trade with free markets encourages the overthrow of tariffs for the free movement of goods and services between countries. According to Trade Theories, countries have peculiar characteristics that give them relative or absolute advantages. Thus, a country can specialize in a commodity and export it and import other commodities.

It is also important to emphasize that countries seek to export more than import, ie to increase their surplus in the trade balance. If a country exports more than it imports, more money gets.