Questions and Answers
What do trade agreements allow countries to do?
Trade for necessary goods.
Why do countries most often create trade agreements?
To reduce tariffs.
What is a specific territory or zone with different laws and regulations called?
Economic zone.
Which group works to help members establish internal political stability?
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What is one stated purpose of the World Trade Organization?
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Why were free trade zones created in China?
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The simplest form of a trade agreement is a __________ agreement created between two countries.
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Which best describes ASEAN?
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How can a nation benefit from effectively exporting its goods?
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Why do countries establish internal economic zones?
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Which group primarily helps settle trade disputes?
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Study Notes
Trade Agreements Overview
- Trade agreements facilitate the exchange of necessary goods between countries.
- Countries create trade agreements primarily to reduce tariffs, promoting free trade.
Economic Zones
- An economic zone is a specific territory that operates under different laws and regulations compared to the rest of the country.
- Internal economic zones are established to minimize economic restrictions, allowing for easier business operations.
Regional and Global Organizations
- The Association of Southeast Asian Nations (ASEAN) assists its members in achieving internal political stability and promotes growth in Southeast Asia.
- The World Trade Organization (WTO) is responsible for monitoring trade policies across numerous countries and primarily resolves trade disputes.
Free Trade Zones in China
- China created free trade zones to attract foreign investments, stimulating economic growth.
Types of Trade Agreements
- The most basic trade agreement is a direct agreement made between two countries, simplifying trade processes.
Exporting Benefits
- Effectively exporting goods allows a nation’s businesses to reinvest in their future, fostering economic development.
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Description
Test your knowledge on trade agreements with these flashcards. Explore key concepts such as economic zones and the reasons countries enter into trade agreements. This quiz will help reinforce your understanding of international trade.
