Which is one potential negative consequence associated with free trade?
Import and export taxes are high under free trade buyers and sellers can no longer make price decisions. Countries that practice free trade, have a high unemployment people in certain industries earn lower wages or self products.
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One potential negative consequence associated with free trade is that countries that practice free trade may experience higher levels of unemployment in certain industries. This is because cheaper imported goods can sometimes outcompete domestic products, leading to businesses in those industries closing down or having to reduce their workforce. Additionally, those who do remain employed in these industries may also earn lower wages due to increased competition.
1 answer