Final answer:
During an FT, increased market share and lower production costs can be true, while decreased customer satisfaction and reduced employee morale are less likely.
Step-by-step explanation:
An FT, or a fair trade, occurs when competition from firms with better or cheaper products reduces a business's profits and may even drive it out of business. As a result, workers may lose income or their jobs. However, it's important to note that an FT can also have positive effects.
For instance, when consumers have access to better or less expensive products, it can lead to increased profits for businesses that offer those products. This, in turn, may result in higher wages for employees. Overall, the gains from an FT can outweigh the losses to a nation.
In terms of the options given, Option 1: Increased market share can be true, as businesses with better or cheaper products may gain a larger share of the market. However, Option 2: Decreased customer satisfaction is unlikely, as customers tend to benefit from better or less expensive products during an FT. Additionally, Option 3: Lower production costs is possible, as businesses may need to streamline their operations to remain competitive. And lastly, Option 4: Reduced employee morale is plausible, especially if workers face job losses or income reductions.