Question

Select all that apply

In addition to the benefits of human and geographical specialization, what are some side benefits to free trade?
A. It promotes monopolies.
B. It offers consumers a narrow range of product choices.
C. It encourages innovation.
D. It promotes competition.

Answer 1

Some side benefits of free trade include promoting competition, encouraging innovation, and offering consumers a wider range of product choices.

Step-by-step explanation:

The side benefits of free trade include promoting competition, encouraging innovation, and offering consumers a wider range of product choices.

Promoting competition: Free trade allows businesses to compete with each other across international borders, which can lead to improved products, lower prices, and higher quality.

Encouraging innovation: When businesses face competition, they are motivated to innovate and improve their products and services to stay ahead.

Offering consumers a wider range of product choices: Free trade allows consumers to access products from different countries, increasing the variety of choices available to them.