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.
Question
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.
Solution
The correct answer is A. One major benefit of free trade is that it lowers the price of goods by increasing efficiency. This happens because free trade allows countries to specialize in the production of goods and services where they have a comparative advantage. This specialization leads to greater efficiency and lower production costs, which can result in lower prices for consumers.
Similar Questions
Free trade can benefit a country's economy by:A.protecting domestic businesses from foreign competition.B.requiring businesses to follow strict worker protection laws.C.ensuring that natural resources are used in sustainable ways.D.giving consumers access to a wider variety of products.
Supporters of free trade argue that it creates which economic benefit?A.Protecting workers by enforcing international labor regulationsB.Increasing efficiency by allowing for greater specializationC.Helping the environment by reducing emissions from shippingD.Promoting independence by reducing reliance on foreign goods
Explain the benefits of free trade as suggested by the principle of comparative advantage
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.
Complete the list below to show the first two reasons for restrictions on free trade:1. To prevent , which is when foreign firms aggressively cut their prices and force producers out of the market2. To protect domestic by increasing demand for goods produced
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