Which statement is true about the free trade argument?
A) It has been adopted by numerous nations around the world through reductions in trade barriers.
B) It argues that tariffs and other trade barriers force industries to continually adjust practices.
C) It advocates for the uninhibited flow of goods, services, and capital between nations.
D) It is praised for considering real-world economic conditions and noneconomic factors like national security.

Question

Quizplus · Accepted Answer

The free trade argument advocates for the uninhibited flow of goods, services, and capital between nations, which is reflected in Figure 5.5 showing Mexico's television market as a result of the North American Free Trade Agreement (NAFTA). Choice A is not accurate as it overgeneralizes the adoption of free trade by numerous nations. Choice B is not correct as it describes the negative effects of trade barriers, rather than the advocacy for free trade. Choice D is incorrect as it attributes qualities to the free trade argument that are not commonly associated with it.

Which Statement Is True About the Free Trade Argument