The movement to free international trade is most likely to generate short-term unemployment in which industries?

Question

Quizplus · Accepted Answer

Free international trade allows foreign companies to sell their products in a domestic market, which can cause decreased demand for domestically produced goods, ultimately leading to unemployment in import-competing industries. In the short-term, these industries may experience difficulties in adjusting to the new competition. Industries that sell to both domestic and foreign buyers may face increased competition but can also benefit from expanded market opportunities. Industries with only foreign buyers are not affected by free trade in the domestic market. Industries with neither imports nor exports would not be directly impacted by free trade.

The Movement to Free International Trade Is Most Likely to Generate