Which of the following is an advantage of free trade?
A) Productivity grows when countries produce goods and services in which they have a comparative advantage
B) Domestic workers can lose their jobs as a consequence of increased imports
C) Moving operations overseas often means the loss of service jobs and growing numbers of white-collar jobs
D) All of the responses are correct

Question

Quizplus · Accepted Answer

Free trade allows countries to specialize in producing goods and services in which they have a comparative advantage, leading to increased efficiency and productivity. This can result in higher economic growth and living standards for all nations involved.

Answer: B, C, D are incorrect
 B, C, and D are not advantages of free trade, but rather potential negative consequences. Domestic job loss and outsourcing are often cited as drawbacks of free trade, but they do not outweigh the benefits in terms of increased productivity, job creation, and economic growth.

Which of the Following Is an Advantage of Free Trade