The theory of free trade is that it should

Question

Mean more goods
Move as many American jobs to other countries as possible
Never cause any kind of disruption in a domestic industry
Make some countries rich and other countries poor

Answer 1

The correct interpretation of the theory of free trade is that it aims to promote the efficient exchange of goods and services between countries without barriers such as tariffs or quotas. The goal is to increase economic efficiency, promote international cooperation, and ultimately benefit all participating countries by allowing them to specialize in producing goods and services in which they have a comparative advantage. Free trade is not about moving jobs to other countries or making some countries rich at the expense of others. Rather, it is about promoting fair and reciprocal trade that benefits all parties involved.