Question

Which statement shows that the agreement between the fictional nations of Ziberia and Deerkey is a free trade agreement? Until the twentieth century, the nations of Ziberia and Deerkey practiced protectionism for many of their key industries.
 A.)Both nations changed their status from developing to developed economies in the twenty-first century. Both nations were producing massive amount of goods, which necessitated expanded export markets. B.) Therefore, the heads of state met in Ziberia’s capital city and began negotiating a trade agreement. Both nations promised to adhere to international labor standards. C.)The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries. D.)Another clause in the agreement required the nations to ensure ethical treatment of livestock according to international animal welfare standards.

Answer 1

The statement that best shows that the agreement between the fictional nations of Aiberia and Deerkey is a free trade agreement is C. The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries. Tariff is a tax levied upon goods as they cross national boundaries. Free trade is international trade left to its natural course without tariffs, quotas or other restrictions.

Answer 2

C.)The nations agreed to remove tariffs on all agricultural goods and to phase out other tariffs in five years. They set a goal to create three million jobs in the two countries.