Regional trade agreements may
A. provide manufacturing organizations with fewer opportunities to reduce costs and provide managers with fewer threats.
B. expose companies based in one member country to increased competition from companies in other member countries.
C. hinder the spread of globalization by setting up trade barriers between different countries of the same region.
D. be created to reduce overall tariffs on goods that flow within a country and increase tariffs on goods that flow between regions.
E. enforce regional restrictions on the cross-border flow of resources and reinforce import tariffs.
Answer: B
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