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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.
3 answers
One potential negative consequence associated with free trade is: People in certain industries earn lower wages or sell fewer products.
This can occur because free trade can lead to increased competition from foreign markets, which can negatively impact domestic industries that may struggle to compete, resulting in lower wages or job losses in those sectors.
Yes, I am sure. One of the notable criticisms of free trade is that it can adversely affect certain industries and workers within those industries. When countries open their markets to international competition, industries that are unable to compete effectively with foreign producers may face challenges, leading to lower wages, reduced job security, or even layoffs. This is particularly evident in sectors where production costs are lower in other countries, resulting in a shift of jobs or reduced economic activity in certain areas.
While free trade can lead to overall economic benefits, such as lower prices for consumers and greater efficiency, it can also create significant challenges for specific groups, highlighting the need for policies that can mitigate these negative impacts, such as retraining programs or support for affected workers.
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