Which of the following statements is TRUE?
A)Free trade is beneficial only if both countries have access to the same technology.
B)Free trade can be beneficial to the economic welfare of all countries involved.
C)Free trade is beneficial only if your competitor does not pay unreasonably low wages.
D)Free trade is beneficial only if your country is strong enough to stand up to foreign competition.
E)Free trade is never beneficial for developing countries.

Question

Quizplus · Accepted Answer

Free trade can lead to increased economic welfare for all countries involved by allowing them to specialize in the production of goods and services where they have a comparative advantage, leading to more efficient resource allocation and potentially higher overall economic output.

Which of the Following Statements Is TRUE