1 Pretest: Unit 9
Question 19 of 40

Which of the following is a benefit of free trade agreements?

A. Creates dependency on other countries for security
B. Encourages foreign investment for economic growth
C. Brings new entertainment to developing countries
D. Allows foreign companies to take advantage of sources of cheap labor



Answer :

Final answer:

Free trade agreements encourage foreign investment for economic growth and can prevent conflicts between economically connected countries.


Explanation:

One significant benefit of free trade agreements is that they encourage foreign investment for economic growth. These agreements enable companies to access larger markets, which can lead to increased profits and innovation. Additionally, proponents argue that free trade can prevent conflicts as economically connected countries are less likely to engage in wars.


Learn more about benefits of free trade agreements here:

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