Caribbean Examinations Council (CXC) Caribbean History Practice Exam

The purpose of the Caribbean Free Trade Area (CARIFTA) was to encourage regional economic cooperation among Caribbean nations. Established in 1965, CARIFTA aimed to create a common market for member states, facilitating the free movement of goods and reducing trade barriers. This initiative was significant in promoting intra-regional trade, which would strengthen the economies of the member countries and foster collaboration on various economic issues. By focusing on trade liberalization and economic integration, CARIFTA laid the groundwork for further regional cooperation and eventually led to the formation of the Caribbean Community (CARICOM).

The other options do not align with the primary objectives of CARIFTA. The alliance mentioned in the first option relates to military matters, which is not relevant in the context of economic cooperation. The establishment of a central currency is a different goal that pertains to monetary union rather than a free trade area. Lastly, increasing European trade dominance does not reflect CARIFTA's aims; instead, it focused on enhancing the economic standing of Caribbean nations through mutual benefit.