How do trade agreements of international organizations affect trade? by encouraging the development of trade policies by elimina
ting tariffs and taxes on imports and exports by encouraging countries to balance imports and exports by helping smaller countries compete in the world market
The correct answer is By encouraging countries to balance imports and exports
Explanation:
Trade agreements allow nations participating to increase their imports (goods from abroad), as well as, exports (goods sold to other countries). Moreover, this is beneficial for the countries participating because it helps them to reach balance in trade; this means the imports and exports are equal in terms of value. This is ideal because importing more goods than exporting implies deficit and a weak economy. Besides this, international trade agreements are regulated by international entities such as the World Trade Organization. In this context, trade agreements affect trade "By encouraging countries to balance imports and exports".
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