What is one potential negative consequence associated with free trade?

(1 point)
Responses

Import and export taxes are high under free trade.

Import and export taxes are high under free trade.

Buyers and sellers can no longer make price decisions.

Buyers and sellers can no longer make price decisions.

Countries that practice free trade have high unemployment.

Countries that practice free trade have high unemployment.

People in certain industries earn lower wages or sell fewer products.

1 answer

One potential negative consequence associated with free trade is that people in certain industries earn lower wages or sell fewer products. This can occur because increased competition from foreign markets may lead to job losses or wage reductions in domestic industries that struggle to compete.