WBCS.LIVE practice question

What is the main reason for the establishment of free trade zones?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. To protect local industries from foreign competition
  2. To restrict foreign investment
  3. To promote international trade by reducing tariffs and barriers
  4. To centralize economic activities in one location

Correct answer and explanation

Correct answer: To promote international trade by reducing tariffs and barriers