Which of the following statements is true?

Question

Quizplus · Accepted Answer

Free trade leads to the expansion of the export-oriented sector due to increased access to foreign markets, but it can cause contraction in the import-competing sector as cheaper imports flood the market. Therefore, statement B is true. Statement A is incorrect because free trade expands the export sector. Statement C is incorrect because free trade increases the variety of goods available and expands choices for domestic consumers. Statement D is incorrect because only efficient domestic producers benefit from free trade, while inefficient producers may suffer.

Which of the Following Statements Is True