15 of 1515 of 15 Items

Question

Question
The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?
(1 point)
Responses

Businesses will most likely not offer a variety of products.
Businesses will most likely not offer a variety of products.

Consumers will face higher prices as trade deficits increase.
Consumers will face higher prices as trade deficits increase.

Industries will increasingly focus on using interdependence.
Industries will increasingly focus on using interdependence.

Producers will be put out of business as more interesting products enter the market.

Answer 1

When the United States signs a free trade agreement with another country that has dramatically different resources, it is likely that the following response is most applicable:

Industries will increasingly focus on using interdependence.

Free trade agreements typically promote the exchange of goods and services across borders, allowing industries to benefit from the comparative advantages of different countries. This can lead to increased interdependence between economies, as they specialize in different products based on their resources and capabilities.