A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateral approach, because the multilateral approach can reduce trade restrictions abroad as well as at home.

Question

Quizplus · Accepted Answer

A multilateral approach involves multiple countries negotiating trade agreements that reduce tariffs and other barriers collectively, thus potentially opening up larger markets and creating more opportunities for trade expansion than unilateral actions, which involve only one country reducing its barriers without reciprocal actions from other countries.

A Multilateral Approach to Free Trade Has Greater Potential to Increase