Question

What can be a result of free trade? Check all that apply.

trade imbalances
decreased production
lower economic growth
increased pollution
exploitation of workers
new opportunities

Answer 1

Select all that apply: trade imbalances, decreased production, increased pollution, exploitation of workers, new opportunities.

Brief notes:
- Trade imbalances — Yes. Free trade can produce persistent trade surpluses or deficits between countries.
- Decreased production — Yes (in some domestic industries). Competition from imports can shrink or eliminate certain sectors.
- Lower economic growth — Not generally. On aggregate free trade tends to raise growth, though some countries or groups can suffer short‑term declines.
- Increased pollution — Yes. Production may shift to countries with weaker environmental regulation (the "pollution haven" effect).
- Exploitation of workers — Yes. Firms may relocate to places with lower labor standards, risking poor working conditions.
- New opportunities — Yes. Free trade opens export markets, reduces consumer prices, and can spur innovation and new jobs.