Question

Which of the following is not a benefit of foreign trade?

a. it allows each country to produce the goods for which they have the lowest opportunity cost.
b. nations become dependent on each other
c. specialization creates better products
d. it is mutually beneficial because nations enjoy a bigger variety of products

Answer 1

The correct option is B. Foreign trade makes countries to depend on one another and this can make them vulnerable to attacks. This is one of the disadvantages of foreign trade.

Answer 2

The correct answer should be b. nations become dependent on each other

This is a bad thing and not a benefit because if the two countries proclaim sanctions against each other or if they go to war then they will not have access to the goods that they depend on, and since they don't have their own goods there will be a shortage and people will be angry.