Question

a student made the following list for why countries enter trade agreements:
i. trading partners are less likely to go to war with one-another
ii. allows nations to resist market upheavals
iii. will encourage conflict between neighbouring nations for access to resources for partners
iv. nations will become less reliant on each other

1. based on the sources above, which of the statements best describes why many nations enter trade agreements:

a. statement i
b. statement ii
c. statement iii
d. statement iv

Explanation:

Trade agreements create mutual economic dependencies and benefits, making war between trading partners costly and unlikely (Statement I). Statement II is incorrect as trade links nations to global markets, increasing exposure to market upheavals. Statement III is wrong because trade agreements reduce resource access conflicts, not encourage them. Statement IV is false as trade makes nations more reliant on each other, not less.

Answer:

a. Statement I