Australia agrees to new trade deal:Australia, along with 14 other Indo-Pacific nations, agreed to the Regional Comprehensive Economic Partnership (RCEP) in November. The RCEP is a new Free Trade Agreement, potentially the largest of its type in the world. In total, 15 countries have signed the agreement, including China, Japan and South Korea. However, both India and the United States are not included in the initial agreement. RCEP participants make up nearly 30% of the world’s population and GDP, and represent 66% of Australia’s exports. RCEP is an example of a “multilateral” trade agreement i.e. an agreement that involves multiple nations. Source: Plain English Economics.Question: Free trade agreements like the RCEP are an indication that the world is becoming:(2 Points)UnilateralLess integratedGlobalisedProtectionist
Question
Australia agrees to new trade deal:Australia, along with 14 other Indo-Pacific nations, agreed to the Regional Comprehensive Economic Partnership (RCEP) in November. The RCEP is a new Free Trade Agreement, potentially the largest of its type in the world. In total, 15 countries have signed the agreement, including China, Japan and South Korea. However, both India and the United States are not included in the initial agreement. RCEP participants make up nearly 30% of the world’s population and GDP, and represent 66% of Australia’s exports. RCEP is an example of a “multilateral” trade agreement i.e. an agreement that involves multiple nations. Source: Plain English Economics.Question: Free trade agreements like the RCEP are an indication that the world is becoming:(2 Points)UnilateralLess integratedGlobalisedProtectionist
Solution
Free trade agreements like the RCEP are an indication that the world is becoming: Globalised.
Explanation: A free trade agreement like the RCEP, which involves multiple nations, is a clear sign of globalization. Globalization refers to the integration and interaction among people, companies, and governments worldwide. By creating such agreements, countries are able to trade freely with each other, which leads to an interconnected and interdependent world. This is the opposite of protectionism, where countries restrict imports from other nations to protect domestic industries. It's also different from unilateralism, where a country would take actions in its own interest, potentially at the expense of others. Lastly, it's a move towards more integration, not less.
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