What is the purpose of free trade agreements?

Free trade agreements are designed to promote trade between participating countries by reducing or eliminating trade barriers. These agreements aim to create a more favorable trading environment by simplifying the flow of goods and services. By lowering tariffs, quotas, and other types of restrictions, countries can cultivate better economic relationships, encourage competition, and enhance market access for businesses.

The other options represent goals or functions that are not typical of free trade agreements. Increasing tariffs works against the very essence of free trade, which seeks to lower costs for consumers and facilitate easier business operations across borders. Coordinating monetary policies and establishing a uniform currency pertain more to economic or financial unions rather than trade agreements, which primarily focus on the terms and conditions under which goods and services can be traded. Thus, the choice that highlights the reduction or elimination of trade barriers accurately captures the primary purpose of free trade agreements.