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
only 1
The effects of free trade on the United States include:
1. Lower prices: Free trade can lead to lower prices for imported goods, as domestic producers face competition from international manufacturers.
2. Decreased wages: Free trade can also result in decreased wages for certain industries, as companies may outsource production to countries with lower labor costs.
3. Higher farm profits: Free trade can benefit certain sectors, such as agriculture, by providing access to larger markets and increasing export opportunities, leading to higher farm profits.
4. Less variety in businesses: Free trade can contribute to the consolidation of certain industries, as smaller businesses may struggle to compete with larger, more established international companies.
5. More low-skill jobs: Free trade can lead to the offshoring of low-skill, labor-intensive jobs to countries with lower wages and production costs.
6. Increased consumer choice: Free trade can expand the range of products available to consumers, as imported goods provide additional options and competition in the domestic market.
To determine how free trade affects the United States, we need to consider the different possible outcomes. Let's go through each response option and explain how it relates to the impact of free trade:
1. Lower prices: Free trade can lead to lower prices for goods and services due to increased competition and access to cheaper imports.
2. Decreased wages: Free trade can potentially result in decreased wages for certain industries or job sectors that face increased competition from lower-cost foreign labor.
3. Higher farm profits: Free trade can benefit agricultural producers by providing access to larger markets and increasing export opportunities, which could lead to higher profits.
4. Less variety in businesses: Free trade may lead to increased specialization and concentration in certain industries, potentially reducing the diversity of businesses in specific sectors.
5. More low-skill jobs: Free trade can create more employment opportunities, including low-skill jobs, in industries that benefit from increased international trade.
6. Increased consumer choice: Free trade can expand the availability of imported goods, providing consumers with a greater variety of choices.
Based on these explanations, the correct responses related to how free trade affects the United States would be:
- Lower prices
- Higher farm profits
- More low-skill jobs
- Increased consumer choice
lower prices
higher farm profits
increased consumer choice