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How does free trade affect the United States? Select all that apply. (1 point) Responses lower prices lower prices decreased wages decreased wages higher farm profits higher farm profits less variety in businesses less variety in businesses more low-skill jobs more low-skill jobs increased consumer choice

3 answers

Free trade can have several effects on the United States. From the options provided, the following are applicable:

  1. Lower prices - Free trade can lead to lower prices for consumers as it increases competition and allows imports to come in at a lower cost.

  2. Decreased wages - Some industries may face downward pressure on wages due to increased competition from foreign markets, particularly in sectors where American labor is more expensive.

  3. Higher farm profits - For certain agricultural sectors, free trade can open up new markets, potentially leading to increased profits for farmers who can export their goods.

  4. More low-skill jobs - Free trade can lead to the outsourcing of some low-skill jobs to countries where labor is cheaper.

  5. Increased consumer choice - Free trade expands the variety of goods available to consumers, as it allows for the import of products from different countries.

The following are typically not considered effects of free trade:

  • Less variety in businesses - Free trade generally increases variety, not decreases it.
  • Higher farm profits could vary; while some farmers may benefit, others in less competitive sectors might face challenges.

Therefore, the selected effects are:

  • Lower prices
  • Decreased wages
  • Higher farm profits
  • More low-skill jobs
  • Increased consumer choice
pick only 2

If I have to choose only two effects of free trade on the United States, I would select:

  1. Lower prices - Free trade often leads to lower prices for consumers due to increased competition and access to cheaper imports.

  2. Increased consumer choice - Free trade expands the variety of goods available to consumers, allowing them to choose from a broader range of products from different countries.