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

Question

Quizplus · Accepted Answer

Free trade can be beneficial to economic welfare of all countries involved. While there may be some challenges and criticisms of free trade, the consensus among economists is that it is generally beneficial for all parties involved. Free trade allows for specialization, economies of scale, and access to a wider range of goods and services at lower prices, which can lead to increased economic growth and higher standards of living. Developing countries can also benefit from free trade if they are able to take advantage of their comparative advantages and attract foreign investment.

Which of the Following Statements Is TRUE