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In what way do ISO standards facilitate international trade?
By minimizing the number of products available
By creating uniform trade barriers
By preventing trade barriers and promoting fair trade
By increasing regulatory compliance costs
The correct answer is: By preventing trade barriers and promoting fair trade
ISO standards play a significant role in facilitating international trade by establishing common frameworks and benchmarks that improve consistency and quality across different markets. By promoting uniformity in product specifications, manufacturing processes, and service delivery, ISO standards help to reduce the risks and uncertainties associated with cross-border transactions. This standardization prevents the imposition of arbitrary trade barriers that can arise from differing national regulations and practices, allowing for a smoother flow of goods and services across international borders. When businesses operate under these internationally recognized standards, they can assure customers and trading partners of the quality and safety of their products, thus fostering trust and promoting fair competition. As a result, ISO standards can lead to increased market access and reduce the costs associated with compliance and certification when entering new markets. This enhanced interoperability among products and services helps create a level playing field for businesses and ultimately contributes to the growth of international trade.