Question

Which of the following effects would not likely result from enacting a free trade agreement? A. Imports would increase. B. Exports would increase. C. Prices of goods would decrease. D. Quotas and tariffs would increase.

Answer 1

Answer:

D. Quotas and Tariffs would increase

Explanation:

All the scenarios mentioned in options A,B and C are possible results of the enactment of a free trade agreement. However quotas and tariffs are policy matters and are considered restrictive trade practices. The enactment of a free trade policy usually results in the reduction of quotas and tariffs.

For eg. after the enactment of India's  free trade agreement with ASEAN, it's said that tariffs on 90% of the items including palm-oil & coffee have come down.

Answer 2

Quotas and tariffs would increase would not likely result from enacting a free trade agreement.

Explanation:

• Free trade is a  policy that does not place the restriction n the import or exports of the goods and services when trading in an international market.  

• This policy holds a liberal economic position and has unregulated access to markets around the world.

• Unregulated access to market information.

• Absence of any trade-distorting policies.

Learn more about the following effects would not likely result from enacting a free trade agreement.

• brainly.in/question/9799891 answered by empathictruro.