Question

Which statement describes an advantage of increased global trade and competition on the U.S. economy?

A) The variety of goods and services available decreases over time.
B) Consumers have to pay higher prices for a limited number of goods.
C) The United States can focus on producing goods than it can make more efficiently than other countries.
D) The United States can economically profit from tariffs and quotas designed to protect infant industries.

Answer 1

The correct answer is C) The United States can focus on producing goods than it can make more efficiently than other countries.

The statement that describes an advantage of increased global trade and competition on the U.S. economy is "The United States can focus on producing goods than it can make more efficiently than other countries."

In a global economy like the one we are living right now, competition is one factor that makes companies produce better goods at better prices. This makes companies in a determined country such as the United States, to modify their strategies in order to get advantages when global markets allow this kind of competition.

That is why it is so important international agreements such as NAFTA, the North American Free Trade Agreement between México, Canada, and the United States.