A multilateral approach to free trade has the potential to increase the gains from trade more than a unilateral approach does, because the multilateral approach can reduce trade restrictions abroad as well as at home.

Question

Quizplus · Accepted Answer

A multilateral approach involves negotiations and agreements with multiple countries, which can lead to the reduction of trade barriers in all of those countries. This can lead to greater gains from trade than a unilateral approach, which only focuses on reducing trade barriers within one's own country.

A Multilateral Approach to Free Trade Has the Potential to Increase