Which of the following statements is TRUE?
A) Free trade is beneficial only if your country is strong enough to stand up to foreign competition.
B) Free trade is beneficial only if your competitor does not pay unreasonably low wages.
C) Free trade is beneficial only if both countries have access to the same technology.
D) Free trade is never beneficial for developing countries.
E) Free trade can be beneficial to the economic welfare of all countries involved.

Question

Quizplus · Accepted Answer

Free trade can be beneficial to the economic welfare of all countries involved, as it allows for increased specialization, efficiency, and greater access to a broader range of goods and services, leading to overall economic growth and consumer welfare. However, there can be challenges and negative effects in specific situations, such as when there are disparities in labor or environmental practices or when one country has a significant advantage in terms of technology or resources. Ultimately, the benefits of free trade depend on the specific circumstances and policies implemented.

Which of the Following Statements Is TRUE