Free Trade Agreements Are Designed To Prevent Which Of The Following Quizlet

2. Quotas: the import and export authorisation shall be accompanied by quantitative restrictions or import and export quotas. Import quotas limit the quantity of certain products entering a given country. The system also limits the independence of companies from entering a foreign market. Export quotas limit the volume of products leaving a country to ensure supply to the local market, control and prevent the lack of products that are strategic for a country, and manipulate prices internationally. The US trade agreement signed by the Clinton administration with China in November 1999 is a step in the right direction. It will help open up the Chinese market to an unprecedented extent to U.S. exports and foreign direct investment. Economic freedom is the main benefit of expanding trade, both for U.S. companies wishing to invest in China and for the Chinese people themselves. These foundations of economic freedom will not only allow the Chinese people to access the outside world, but also expose the Chinese government to the international consensus on the rule of law – and compel it to uphold it. Issues such as property rights and the collection of contracts that companies have found in the past as a problem in trying to do business in China will be more powerful.

The 2000 Index of Economic Freedom considers Taiwan to be the 11th freest economy in the world. With its economic freedom came the rise of democratic institutions. .