The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?

Question

The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?

Businesses will most likely not offer a variety of products.
Businesses will most likely not offer a variety of products.

Consumers will face higher prices as trade deficits increase.
Consumers will face higher prices as trade deficits increase.

Industries will increasingly focus on using interdependence.
Industries will increasingly focus on using interdependence.

Producers will be put out of business as more interesting products enter the market.

Answer 1

The United States may benefit from access to cheaper imports and new markets for its exports. This could lead to increased competition and efficiency in domestic industries. Additionally, the United States may be able to specialize in producing goods or services in which it has a comparative advantage, leading to increased overall economic growth. Overall, the trade treaty could lead to both opportunities and challenges for the United States economy.