207k views
1 vote
What is one of the benefits of trade policies that eliminate barriers in international trade?

O More international trade translates to higher wages for all workers in the United States.
There are more goods and services available, and this competition drives down prices.
O Sales of US products increase due to fewer foreign products in the marketplace.
O Working conditions improve for employees in each of the trading partner countries.

User JJ Liu
by
8.0k points

1 Answer

4 votes

Final answer:

One of the benefits of trade policies that eliminate barriers in international trade is the increase in goods and services available and a decrease in prices due to competition. This benefits both consumers and businesses.


Step-by-step explanation:

One of the benefits of trade policies that eliminate barriers in international trade is that there are more goods and services available, and this competition drives down prices. When barriers to trade such as tariffs or quotas are removed, businesses can access a wider variety of inputs and resources from different countries, resulting in more choices and lower costs for consumers.

For example, if a country eliminates trade barriers on imported cars, consumers will have more options to choose from, including both domestic and foreign cars. This increased competition will encourage car manufacturers to lower their prices and offer better deals to attract customers.

This benefit of increased competition and lower prices also extends to a global scale. When countries trade more freely with each other, it leads to a larger market for goods and services, allowing businesses to achieve economies of scale and lower their production costs. This cost reduction can be passed on to consumers in the form of lower prices.


Learn more about Benefits of trade policies that eliminate barriers in international trade

User Sefier Tang
by
8.3k points