A Free Trade Agreement also cements rights and protections for investors and corporations. This is most directly beneficial to which group?

• A. Consumers
• B. Investors and corporations
• C. Employees
• D. Governments

Answer: (B)

The main idea being tested is that investment protections in Free Trade Agreements are designed to create a stable, predictable environment for cross-border investment. When an FTA includes rights such as national treatment, fair and equitable treatment, protection against expropriation, and access to international dispute resolution, it directly reduces political and legal risk for investors and for companies operating abroad. This means investors and corporations can plan, commit capital, and repatriate profits with greater confidence, because they know how their investments will be treated and how disputes will be resolved.

Consumers might benefit indirectly from lower prices and more choices, and employees could gain from potential job growth, but those gains are secondary to the explicit protections that reduce risk for those who invest and run businesses across borders. Governments may value sovereignty and policy space, but the protections are specifically aimed at supporting investors and corporate interests, making them the most directly benefited group.