Which of the options below is the only characteristic of a free trade area?

Related MCQs

• In a free trade world in which no restrictions exist, international trade will lead to:
• Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
• Country A and Country B produce computers and Web sites. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 At which of the following relative prices (computers in terms of Web sites) will Country B produce both goods under free trade?
• If a nations terms of trade is ½ its trade partners terms of trade is
• The movement to free international trade is most likely to generate short-term unemployment in which industries:
• The movement to free international trade is most likely to generate short-term unemployment in which industries?
• Which among the following best explains the difference between Trade in Invisibles and merchandise trade?
• “Free trade between two countries in H O model will equalize relative factor prices provided there is incomplete specialization.” This is
• Why do some people argue against free international trade?
• In free trade between two countries in an H-O world: