E.50: Arguments For and Against Free Trade

What does free trade encourage countries to specialize in?

• Goods and services where they have a comparative advantage

• Only high-tech industries

• Agricultural products exclusively

• Domestic goods only

How does free trade benefit consumers?

• Increases prices due to tariffs

• Reduces product choices

• Promotes competition and lowers prices

• Leads to higher prices for imports

What is a potential negative effect of free trade on employment?

• Increases job opportunities in all sectors

• Leads to job displacement in non-competitive industries

• Guarantees job security in domestic industries

• Eliminates unemployment

Which of the following is a benefit of free trade related to economic growth?

• Restricts innovation and technology transfer

• Decreases productivity

• Stimulates economic growth by enhancing global trade

• Limits investment opportunities

What can be a consequence of free trade for domestic industries?

• Can lead to the decline or collapse of non-competitive industries

• Ensures profitability of all domestic businesses

• Prevents any form of competition

• Universal growth in all sectors

How does free trade potentially affect national security?

• Eliminates any security risks

• Always strengthens domestic production

• Can pose risks by depending on foreign critical goods

• Ensures self-sufficiency in all critical sectors

What role does free trade play in international relations?

• Isolates countries economically

• Has no impact on international relations

• Increases likelihood of conflicts

• Fosters cooperation and can deter conflicts

What is a direct impact of free trade on consumer goods?

• Restricts access to international markets

• Offers a wider variety of goods at competitive prices

• Increases prices across all sectors

• Decreases the variety of goods available