Apply the appropriate label to each market situation. 1. Two countries agree to lower import tariffs on selected goods. (international trade) 2. A country loosens its restrictions on foreign-based land ownership. (flow of funds across national borders) 3. A nation permits private firms to compete with the state-owned mail service. (competitive markets)

Answer: 1 Bilateral trade agreement, 2. Foreign direct investment, 3. Deregulation

Explanation:

Bilateral trade agreement : This can be defined as the agreement between two countries to give each other a free access to each other market. This kind of agreement create a level playing field for the citizens of both countries to compete favourably in each other market without any form of discrimination or restriction whatsoever. The agreement is reached in order to eliminate tariff on goods coming from each other countries or to lower the tariff on goods coming from each other countries.

Foreign direct investment : This is the free movement of money from one country to another for the purpose of investment in business ventures or in properties in that country. It is the ownership of business or investment in one country by an individual or corporate body based in another country. For instance when a foreigner owns an asset such as land or building in another country or business venture.

Deregulation : This is the economic policy by which a government of a nation decides to remove the existing control or any form of regulation in the market with a view to further promote competition in the market. It applies to when a government allows a privately own business to compete in the same market with the government owned business. In this case each company's will compete favourably for its own share of the market which are previously reserved only for the government owned business to operate.