1. State whether the following statements are true or false. If false, correct the statement to make it true. (20 points) i. International trade can increase the levels of national income. ii. The WTO encourages its member countries to incorporate quotas in their commercial policies. iii. As a preferential trade area, the USA, Canada, and Mexico have agreed to always charge same tariff rates on goods coming from non-member countries. iv. Quotas can completely eliminate trade in certain products. v. Tariffs limit trade more than do any other form of trade barriers. vi. If country A provides exports subsidies to all its firms, then country B is legally allowed to impose tariffs on imports coming from country A. vii. For poor countries, protecting their infant industries guarantees that those industries grow and are later able to better compete with foreign industries. vili. The tariffs member countries belonging to the same preferential trade arrangement charge against one another tend to be lower than those charged against non-member countries. ix. Preferential trade arrangements will always cause trade diversion. x. Sometimes countries enter into preferential trade arrangements for reasons other than economic ones