Question

Which of the following is a cost associated with free trade?

A. It will increase the availability of diverse products.
B. It will increase global trade.
C. Companies may move production to other countries.
D. Consumers will pay lower prices.
Please select the best answer from the choices provided
OB

Answer 1

C. Companies may move production to other countries.

Step-by-step explanation:

When free trade is arranged between countries, countries can obtain goods and servicies from other countries. Exchange would tipically happend when prices of certain goods and services are cheaper in other countries than inside our country.

Answer 2

C. Companies may move production to other countries.

Step-by-step explanation:

• When free trade is arranged between countries, countries can obtain goods and servicies from other countries. Exchange would tipically happend when prices of certain goods and services are cheaper in other countries than inside our country.

• In terms of servicies, companies can find a benefit employing workers in other countries where salaries are lower abroad (for example, companies related to online services may find benecial to employ people with lower salaries in another country, than employing people in their own country where salaries are higher).
• This is a cost associated with free trade, because when production is moved to another country, unemployment may rise, and salaries too, decreasing society's wealfare.