Which of the following is a positive result of trade agreements such as NAFTA and the EU?

• A. The elimination of all unemployment in member countries
• B. A universal agreement on environmental standards
• C. An increase in the volume of trade between member countries
• D. A guarantee of fair income distribution among all citizens

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the purpose of trade agreements like NAFTA and the EU, which primarily aim to reduce trade barriers such as tariffs and quotas between member countries.
2. Step 2: Recognize that by reducing these barriers, trade agreements facilitate easier and increased exchange of goods and services among member countries.
3. Step 3: Analyze the options given: elimination of all unemployment is unrealistic as trade agreements do not directly control employment levels; universal environmental standards are difficult to achieve and not guaranteed by trade agreements; fair income distribution is a social goal but not a direct outcome of trade agreements.
4. Step 4: Identify that the most direct and positive result of such agreements is the increase in the volume of trade between member countries, as lower barriers encourage more imports and exports.
5. Step 5: Conclude that the correct answer is the increase in trade volume, reflecting the core economic benefit of trade agreements.