A
To increase import quotas and enforce strict border tariffs
B
To reduce tariffs and import quotas to encourage cross-border trade
C
To create a single unified currency across the participating nations
D
To abolish all national regulations on foreign labor migration
Correct answer: (b) To reduce tariffs and import quotas to encourage cross-border trade
Explanation
Key B is correct because an FTA is designed precisely to reduce tariffs and import quotas to encourage cross-border trade. The other options describe monetary unions, increased protectionism, or immigration policies which are not the definition of an FTA.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.