Question

how do trade agreements of international organizations affect trade?
by incentivizing the development of trade policies
by eliminating tariffs and taxes on imports and exports
by encouraging countries to provide open access to trade
by helping smaller countries compete in the world market

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: Incentivizing trade policy development is not the primary way trade agreements affect trade directly.
• Option 2: Trade agreements often reduce or eliminate tariffs and taxes (barriers) on imports/exports, which directly impacts trade by making it cheaper and easier to trade goods/services across borders. This is a core mechanism of trade agreements.
• Option 3: While open access is a goal, the key direct impact of trade agreements (like WTO agreements or regional ones) is reducing trade barriers (tariffs/taxes) rather than just "encouraging" open access in a general sense.
• Option 4: Helping smaller countries compete is a secondary or indirect effect, not the main way trade agreements affect trade. The primary impact is on reducing trade barriers (tariffs/taxes).

Answer:

B. by eliminating tariffs and taxes on imports and exports