2 questions!! Double the points!!

1. Which is not an argument for free trade?

It eliminates unemployment in developed nations.

It results in less expensive goods for many people.

It allows countries to focus on what they do best.

It encourages international cooperation.

2. Which is an argument against free trade?

It leads to international conflict.

It violates basic economic principles.

It increases the prices for many products.

It encourages outsourcing.

When trade barriers are eliminated and markets integrated there is free trade. This integration allows multinational corporations from developed countries to divide their production process in different stages and to locate each of them in a different location, seeking to reduce production costs (outsourcing). Many manufacturing activities are not performed in the company's home country anymore, therefore jobs are destroyed there and transferred to developing countries, where the price paid for the different factors of production (land, labor, capital) is usually cheaper.

ogorwyne ogorwyne · Answer 2 · 2022-06-01T15:30:29+02:00

The answer that is not an argument for free trade is that it

1. eliminates unemployment in developed nations.

2.It encourages outsourcing.

What is outsourcing?

This is the type of economic system where the jobs or other employment offers of a nation are taken to other nation so that the people would offer these services.

An argument against free trade is that free trade leads to encouragement outsourcing.