What Is an Advantage of Free-Trade Agreements

question 5

Multiple Choice

What is an advantage of free-trade agreements?

• A)They protect domestic industries and jobs by taxing goods imported from outlying regions.
• B)They protect the well-being of people by restricting the flow of goods being exported from their country.
• C)They reduce the impact of globalization by preventing the loss of capital from a country.
• D)They provide managers with a threat-free environment to work within.
• E)They provide manufacturing organizations with opportunities to reduce production costs.

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Definitions:

Current Year Income

The total amount of money earned by an individual or entity within the current calendar year.

1944 Dollars

The value of currency adjusted for inflation to reflect the purchasing power of the United States dollar in the year 1944.

Consumer Price Index (CPI)

A standard for measuring the weighted average expenditure on a compilation of consumer products and services such as transportation, healthcare, and food.

Base Period

A specific time interval used as a reference point for comparing economic or financial data over different periods for analysis or index calculation purposes.