Why would this passage appear in a trade agreement? Check all that apply.
It gives imported products an advantage in a foreign market.
It lets a nation phase out industries that are not helping its economy.
It lets each nation protect its own industries.
It lets the partner nation know about decisions affecting its exports.
It balances a nation’s imports with its exports.
In a trade agreement, the following reasons could apply:
1. It gives imported products an advantage in a foreign market. – Trade agreements often reduce tariffs and trade barriers, making it easier for imported products to compete in the partner nation’s market.
2. It lets each nation protect its own industries. – Agreements may include provisions that allow countries to implement safeguards or tariffs to protect domestic industries from unfair competition.
3. It lets the partner nation know about decisions affecting its exports. – Transparency is key in trade agreements, and countries typically keep each other informed about regulations that could impact exports.
4. It balances a nation’s imports with its exports. – Trade agreements can help promote reciprocal trade, encouraging balanced economic relationships between nations.
The option “It lets a nation phase out industries that are not helping its economy.” is less likely to be a reason for including such a passage, as agreements generally aim to protect existing industries.
In summary, the passage can provide advantages related to market access, protective measures, communication of regulations, and trade balance.