Which of the following is NOT a reason that free trade stimulates economic growth?
A)Free trade encourages a more rapid spread of technology.
B)Industries have larger markets.
C)The importation of technically advanced products enables the country to imitate the technology.
D)Free trade keeps domestic prices up, enabling firms to make more profits that can be spent on research and development.

Question

Quizplus · Accepted Answer

Free trade actually leads to more price competition and can sometimes result in lower prices for consumers, which may affect firm profits. Therefore, free trade does not necessarily keep domestic prices up and cannot be considered as a reason for stimulating economic growth.

Which of the Following Is NOT a Reason That Free