What is the primary benefit of joining a free-trade area?

The primary benefit of joining a free-trade area is the reduction of trade barriers between member countries. Free-trade areas are designed to eliminate tariffs, quotas, and restrictions on the movement of goods and services between member nations. This encourages increased trade and economic cooperation, allowing businesses to access a larger market without the added costs of tariffs.

The removal of barriers facilitates competition and can lead to lower prices for consumers, greater variety of goods, and more efficient allocation of resources. By fostering a more open trading environment, countries within a free-trade area can enhance their economic growth and prosperity.

In contrast, increased tariffs on imported goods would actually be detrimental to the aims of a free-trade area. Improved foreign relations can be a benefit of engaging in trade, but it is not the main focus of a free-trade area; rather, it is a byproduct of economic collaboration. Lastly, standardization of currencies is related to economic integration but is not a defining characteristic of free-trade areas, which can exist even with differing currencies among member states.