Free trade helps developing countries when
A) multinational corporations take over government infrastructure projects.
B) the government subsidizes local production.
C) the government blocks foreign investment.
D) workers lose their jobs.
E) restrictions on goods that developing countries produce efficiently are removed.

Question

Quizplus · Accepted Answer

Free trade helps developing countries when restrictions on goods that developing countries produce efficiently are removed. When barriers to trade are abolished, developing countries have access to larger markets for their goods and services, enabling them to export more and earn more foreign exchange. These foreign exchange earnings can be used to finance imports of capital and consumer goods, contributing to economic growth and development. Additionally, free trade can attract foreign investment, transfer technology and knowledge, and improve competition, stimulating growth and development.

Free Trade Helps Developing Countries When