Question

Which of the following best describes the impact of free trade on the price

Company X pays for parts?
Company X is a manufacturing company based in a large
city in the United States. Company X historically buys its
parts from another company based in the United States
and has its manufacturing plant in the city. Company X is
now reviewing its strategic plan for the future.
OA. Prices would likely go up because of increased competition.
B. Prices would go up because manufacturing is always more
expensive overseas.
OC. Prices could go down.
D. Prices would stay the same because there are few options for
manufactured parts.

Answer 1

The impact of free trade on the price Company X pays for parts is that prices could go down.

Step-by-step explanation:

The best description of the impact of free trade on the price Company X pays for parts is that prices could go down. When a country engages in free trade, it opens up opportunities to import goods and parts from other countries where they may be produced more efficiently and at a lower cost. This increased competition and access to a larger market can result in lower prices for Company X when purchasing parts.

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