Question

An agreement between two nations or a group of nations which establishes unimpeded exchange and flow of goods and services between/among trade partners regardless of national boundaries is called ____________.
A) Import free agreement
B) Free Trade agreement
C) Export Free Agreement
D) Special Economic Zone agreement

Answer 1

Hint: Despite the fact that national borders are important to the definition of international marketing, the problem has not been adequately examined. The author seeks to address this by examining national boundary conceptions and presenting a theoretical model and propositions that describe the impact land boundaries have on actors in the border zone.

Complete answer:
A free trade agreement is a pact between two or more countries to lower import and export duties. Free trade policies allow products and services to be bought and sold across international borders with little government tariffs, quotas, subsidies, or restrictions. Free trade is the polar opposite of trade protectionism and economic isolationism.

In today's world, free trade policies are frequently implemented through formal and mutual agreements between countries. A free-trade policy, on the other hand, could simply be the lack of trade barriers.

Governments that have implemented free-trade policies or agreements do not have to give up all control over imports and exports, nor do they have to forsake all protectionist policies. Few free trade agreements (FTAs) in modern international trade result in complete trade freedom.

Therefore the correct answer is option ‘A’.

Note: In theory, worldwide free trade is no different than trade between neighbours, municipalities, or states. It does, however, allow firms in each country to concentrate on creating and selling commodities that best utilise their resources, while importing goods that are scarce or unavailable domestically. This combination of domestic production and international trade allows economies to grow quicker while better satisfying the requirements of their customers.