Knowledge Checkpoint: Describe what is meant by a free trade agreement. (2 marks)
1 mark for each valid description
1 mark for each valid development
A maximum 1 mark for examples.
A model answer for this question could look something like this:
A free trade agreement is a binding contract negotiated between countries or regions (1) that allows for the movement of goods and services without restriction (1).
Some other valid points that could have been made:
Each country in a free trade agreement can set their own trade restrictions on non-member countries (1).
An example of a free trade agreement is the United States-Mexico-Canada agreement, otherwise known as (USMCA) (1).