Which of the following is evidence that some African countries are trying to reduce trade barriers?
Group of answer choices
the CFA franc
capital investment
tariffs
To determine which of the following is evidence that some African countries are trying to reduce trade barriers, we need to understand the meaning of each option and analyze their implications in terms of trade barriers.
1. The CFA franc: The CFA franc is the currency used by several countries in West Africa and Central Africa. The use of a common currency can facilitate trade among member countries, but it alone does not necessarily indicate an effort to reduce trade barriers.
2. Capital investment: Capital investment refers to the allocation of funds towards projects, businesses, or infrastructure in a given country. While capital investment can contribute to economic growth and potentially lead to increased trade, it does not directly indicate efforts to reduce trade barriers.
3. Tariffs: Tariffs are taxes imposed on imported goods, often with the aim of protecting domestic industries. If African countries are implementing lower tariffs or removing certain tariff barriers, it can be seen as evidence of efforts to reduce trade barriers.
In this case, the option that suggests an active step towards reducing trade barriers is "tariffs." While the other options may have indirect effects on trade, lower tariffs directly contribute to the reduction of trade restrictions.