The most successful free trade agreements achieve all of the ...

[Chelseaamend]

The most successful free trade agreements achieve all of the following goals, except:
 a. benefiting exporters by increasing exports to member countries.
  b. ensuring that production occurs on the basis of comparative advantage.
  c. benefiting consumers by making a wider variety of goods available at a lower price.
  d. stimulating trade creation to allow the benefits of trade to be realized.
  e. protecting domestic industries from foreign competition.

Question 2

The trade-creation effect refers to:
 a. a reduction in economic efficiency as a result of a preferential trade agreement.
  b. a production shift to a higher-cost producer as a result of a preferential trade agreement.
  c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home.
  d. diversion of production from a country that has comparative advantage.
  e. a production shift to a country that does not have comparative advantage.

[alvinum]

Answer to Question 1

b

Answer to Question 2

c

[Chelseaamend]

Excellent

[tkempin]

TYSM