Which of the following arguments is sometimes used in support of free trade?

Question

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The argument that free trade allows firms to increase output and take advantage of lower average production costs is commonly used to support free trade. By removing trade barriers, firms can access larger markets and take advantage of economies of scale, ultimately leading to lower production costs and increased output. This can be beneficial for both domestic and foreign firms, leading to increased competition and lower prices for consumers.

Choice B is incorrect because free trade typically increases competition faced by domestic producers, as foreign firms are able to enter the market and compete with domestic producers.

Choice C is incorrect because free trade typically increases the diversity of products available to consumers, as firms are able to produce more goods and services at lower costs, making them more accessible to consumers.

Choice D is incorrect because free trade is not typically necessary to national security, although some may argue that it can have indirect benefits for national security by promoting economic growth and stability.

Which of the Following Arguments Is Sometimes Used in Support