Why Would Transparency Affect Trade Cooperation

question 66

Multiple Choice

Why would transparency affect trade cooperation?

• A)A country would be more reluctant to enter into a free-trade agreement if it has little information about another country's subsidies to domestic producers.
• B)Two countries with too much information about each other's tax policies would find it difficult to negotiate a free-trade agreement.
• C)Countries that negotiate simpler trade agreements are more likely to suspect the other side of cheating.
• D)Countries with more reasonable negotiators are more likely to negotiate effective trade agreements.
• E)Countries try to conceal information about their domestic policies to improve the likelihood of negotiating an effective free-trade agreement.

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Definitions:

Deficiency

The lack or shortage of something, typically a necessary quantity or quality.

Liable for Payment

Being legally responsible for the settlement of a debt or financial obligation, typically as a consequence of a contract or law.

Consent

The voluntary agreement to or approval of what is done or proposed by another; can be given explicitly or implicitly.

Assign a Mortgage

The transfer of a mortgage from one party to another, changing the lender or creditor while the borrower remains the same.