True or false: when a country is too small to affect the world price, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.

Respuesta :

The answer to this question is False.

Free trade is an international trade (import and export) that has no restrictions and tariffs. Free trade has the following benefits it will increase exports, free trade will increase competition in the market, it can reduce tariffs, it can help a country make use of surplus raw materials, and it will increase economic welfare.  

Answer:

false

Explanation:

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