Question

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Which of the following is a cost associated with free trade?
A It will increase the availability of diverse products
В. 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
оооо
с

Answer 1

Answer C. (Companies may move production to other countries.)

Explanation: Think my Answer is wrong or don't trust it? Let me know!

In a free trade, domestic firms will face a competition from abroad and thus will be more incentives to cut the costs, and increase efficiency. And thus this trade involves the effective and effective use of more resources in the world.