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

Correct answer and explanation

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