Question

At a trade meeting, country A and country B, which are trade partners, agree to remove trade barriers to stimulate economic growth. They sign__ agreement stating that tariffs on all goods will be removed. Some groups in country B protest the agreement because they think it will lead to excessive____ in some industries, which will threaten___ companies and jobs

1. A. An antidumping
B. An arms control
C. A free trade

2. A. Competition
B. Demand
C. Employment

3. A. Domestic
B. Foreign
C. Global

Answer 1

free trade; competition; domestic.

Answer 2

1. Free trade

2. Competition

3. Domestic

Free trade agreements allow for easy trade between countries and can lower prices, but can create a loss of jobs for one country while the other gains employment.

The US has a free trade agreement with Mexico and Canada called the North American Free Trade Agreement (NAFTA). Though it has reduced the prices of natural resources and manufactured goods, it has also resulted in jobs leaving the US and moving to Mexico. Increased free trade agreements have been signed but continue to be criticized as hurting the US job market.