Question

Which best explains why international trade agreements are beneficial for developing economies?

Answer 1

ANSWER:

C) They can help those countries’ economies to grow quickly.

EXPLANATION:

Trade agreements between countries lower trade barriers on imported goods and, according to theory, they should provide welfare gains to consumers from increases in variety, access to better quality products and lower price

Answer 2

Answer:

They can lead to the lifting of sanctions.

Explanation:

Aid doesn't help an economy.

Competing with the United States is more like a result of having a developed economy, rather than a cause of an economy developing. Plus, the United States wouldn't likely export the same things as a developing nation.

International trade agreements don't help an economy to 'grow quickly', plus this is a really general answer.

The lifting of sanctions is really important. It's hard to develop under sanctions. Trade agreements allow for the regulation, reduction and removal of sanctions. For example, if the US made a trade deal with Mexico, it would greatly help Mexico to develop, as they would now be trading more freely with the United States.