Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Why do international organisations such as the International Monetary Fund (IMF) and World Trade Organization (WTO) believe that there should be no barriers to foreign trade?

• A. Trade barriers increase the cost of goods and services.
• B. Trade barriers increase the competition between national and international producers.
• C. Trade barriers hamper the economic growth of countries.
• D. Trade barriers decrease the cost of production of goods and services.

Answer 1

Answer: (A), (C)

Trade barriers hamper the economic growth of countries.

International organisations like the IMF and WTO believe that trade between countries should be free because barriers to foreign trade and investment restrict the growth of countries. Trade barriers like taxes and tariffs increase the cost of goods and services, which then become unaffordable for people.