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One disadvantage of practicing free trade is that:A.it can encourage countries to weaken environmental protection standards.B.it can limit the natural resources available to businesses in a country.C.it can cut off communication between countries and create diplomatic tensions.D.it can prevent countries from specializing in producing specific products.

Question

One disadvantage of practicing free trade is that:A.it can encourage countries to weaken environmental protection standards.B.it can limit the natural resources available to businesses in a country.C.it can cut off communication between countries and create diplomatic tensions.D.it can prevent countries from specializing in producing specific products.

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Solution

One disadvantage of practicing free trade is that it can encourage countries to weaken environmental protection standards. This happens because countries might feel the need to lower their environmental standards in order to compete with other countries that have lower standards. This can lead to a "race to the bottom" where countries continually lower their standards to attract businesses. This can have negative impacts on the environment and public health.

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Similar Questions

One major benefit of free trade is that it:A.lowers the price of goods by increasing efficiency.B.reduces the environmental harm done by businesses.C.protects domestic companies from foreign competition.D.requires countries to enforce worker protection laws.

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Explain the benefits of free trade as suggested by the principle of comparative advantage

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