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
increased consumer choice
lower prices
decreased wages
higher farm profits
more low-skill jobs
increased consumer choice
only two answers are allowed
lower prices and increased consumer choice
The selected effects of free trade on the United States are:
- Lower prices
- Decreased wages
- Higher farm profits
- Less variety in businesses
- More low-skill jobs
- Increased consumer choice
To determine how free trade affects the United States, we can analyze each option listed and identify the correct answers based on our understanding.
1. Lower prices: Free trade allows for the importation of goods from other countries, which often leads to increased competition and lower prices for consumers. This can be a positive outcome as it allows Americans to purchase goods at more affordable rates.
2. Decreased wages: Free trade can also result in increased competition in the job market, particularly in industries that directly compete with imported goods. This competition may lead to decreased wages for some workers. However, it is important to note that this can vary depending on the specific industry and economic conditions.
3. Higher farm profits: Free trade can benefit American farmers by opening up new markets and increasing export opportunities. This can potentially lead to higher farm profits as farmers are able to sell their products to a larger customer base.
4. Less variety in businesses: Free trade can create challenges for certain domestic industries that may struggle to compete with lower-priced imports. This could lead to a concentration of businesses and potentially result in reduced variety in certain sectors. However, it is essential to consider that free trade can also encourage innovation and diversification in other industries.
5. More low-skill jobs: Free trade may lead to the offshoring or outsourcing of certain low-skill jobs as companies seek to reduce labor costs. This can result in job displacement for some workers while creating new employment opportunities in other sectors.
6. Increased consumer choice: Free trade expands the availability of goods and services from a global market. This often means American consumers have a wider range of choices when purchasing goods, leading to increased consumer choice.
Based on the explanations provided, the correct answers for how free trade affects the United States are:
- Lower prices
- Higher farm profits
- Increased consumer choice