Which of the following is most likely to create new markets?

A. Protectionism

B. Competition

C. Free trade

D. Fiscal policy

The correct answer is letter C

Free trade area is a trade agreement made between countries, whose main intention is to increase trade relations between them, by eliminating tariffs and quotas on the import and export of goods and services.

The Free Trade Area is considered one of the intermediary phases for the formation of an economic bloc.

It is worth mentioning that it is not a customs union, as there is no common commercial policy between countries, nor even the establishment of external tariffs valid for all.

These agreements are governed by the WTO (World Trade Organization) or by agreements signed between the member countries themselves.