What can be a result of free trade? Check all that apply.

trade imbalances
decreased production
lower economic growth
increased pollution
exploitation of workers
new opportunities

Respuesta :

The answer is:

-trade imbalances

-increased pollution

-exploitation of workers

-new opportunities

Trade imbalances happen when a country simply had a competitive advantage from other country in almost all aspects (such as technology, labour quality, capital, etc).

Increased pollution and workers exploitation is a risk that might occurs on free trade if we left the business have too much freedom (unregulated).

But, despite the negative aspects, one positive benefit of free trade is that it provide many opportunities for different skill sets and different type of market.

The results of free trade are:

  • trade imbalances
  • increased pollution
  • exploitation of workers
  • new opportunities

What is Free Trade?

Free trade refers to a trade policy that ensures unrestricted import and export of goods and services between countries. It is simply an agreement between nations to eliminate trade barriers and other restrictions.

Free trade has its own advantages and disadvantages. The advantages of free trade includes:

The company get more market geography to sell their goods, new techniques and ideas can be adopted, new growth opportunities for domestic industries, increased job opportunities, and so on.

Free Trade has some disadvantages such as:

There will be trade imbalances due to import and export, the pollution will rise due to increased production, the workers will be forced to produce more at lower wages and will be exploited by the producers.

Therefore free trade will lead to trade imbalances, increased pollution, workers' exploitation and provide new opportunities.

Learn more about free trade here:

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