Free trade policies may lead to
A) a decrease in world output.
B) price increases in world markets.
C) some labor sectors experiencing some short-term job loss.
D) none of the above.

Question

Quizplus · Accepted Answer

Free trade policies can lead to some sectors experiencing short-term job losses, especially if they face competition from low-wage countries. However, in the long run, free trade can lead to increased specialization, efficiency gains, and higher economic growth, which can create new jobs and increase wages for workers. Free trade policies are not expected to lead to a decrease in world output or price increases in world markets.

Free Trade Policies May Lead to