Question

Which of the following are considered to be benefits of international trade?

Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box.

◻️ The ability to purchase goods produced abroad at lower prices than the domestic good

◻️ More jobs in industries with a significant number of imports

◻️ Higher prices for domestic firms in industries with the highest level of imports

◻️ The ability to purchase new products that are not produced domestically

◻️ Access to new resources that are not available domestically

Answer 1

You should not select the second and third option because these are not benefits but disadvantages of trade

Free trade reduces the price of imports, helping the consumers to purchase those goods that are not available domestically or are not produced at a lower cost. They also experience and increase in the variety of goods. Jobs are lost in industries that import goods and services because less number of workers are required. These firms also receive lower price for their products.

Select first fourth and fifth option.