Which of the following is(are) the effect(s) of an international trade agreement that provides an incentive and reward for nations NOT to impose tariffs?
I. an increase in world welfare and standard of living
II. an opportunity for low-income nations to exploit the gains from trade.
III. an opportunity for large countries to improve their terms of trade
a. I
b. I and II
c. I and III
d. I, II, and III
Ans: b. I and II
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