A group of nations establishes a free-trade zone. What is the most likely effect?

ACost of trade increases
BExports decrease
CImports decrease
DTrade increases

Verified Answer :

The most likely effect is that both imports and exports (which are the same thing, just seem from different points of view) increase, and in short: trade increases (option d).

The answer is

d. Trade increases

Since free trade is trade without limitations (like tariffs, quotas and regulations) there will be an increase in trade activity.

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