A formal arrangement between two or more countries to reduce or eliminate tariffs is known as a ________.
A) quota arrangement
B) free trade agreement
C) memorandum of association
D) memorandum of understanding

Question

Quizplus · Accepted Answer

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Through reducing or eliminating tariffs, import quotas, export restraints, and other trade barriers, free trade agreements encourage countries to trade goods and services with each other.

A Formal Arrangement Between Two or More Countries to Reduce