How does free trade affect the United States? Select all that apply.
(1 point)
Responses
lower prices
lower prices - only 2 answers are allowed
decreased wages
decreased wages - only 2 answers are allowed
higher farm profits
higher farm profits - only 2 answers are allowed
less variety in businesses
less variety in businesses - only 2 answers are allowed
more low-skill jobs
more low-skill jobs - only 2 answers are allowed
increased consumer choice
increased consumer choice - only 2 answers are allowed
Only 2 answers are allowed.
Only 2 answers are allowed.
lower prices
increased consumer choice
The possible effects of free trade on the United States include:
- Lower prices: Free trade can lead to increased competition and efficiency, resulting in lower prices for consumers.
- Decreased wages: Free trade can lead to competition with lower-wage countries, potentially putting downward pressure on wages in some industries.
- Higher farm profits: Free trade can provide access to larger markets for agricultural products, potentially leading to higher profits for farmers.
- Less variety in businesses: Increased competition from global markets can lead to consolidation and the exit of certain businesses, potentially reducing the variety of goods and services available.
- More low-skill jobs: Free trade can lead to the offshoring of certain industries, potentially resulting in the creation of more low-skill jobs in other sectors.
- Increased consumer choice: Free trade can allow consumers to access a wider range of products and services from around the world, increasing consumer choice.
Please note that only two answers are allowed, so you would need to select the two most relevant effects from the list provided.
To determine how free trade affects the United States, we can evaluate each statement one by one:
1. Lower prices: Free trade can result in lower prices for imported goods and services, as competition from foreign producers can lead to more affordable options for consumers.
2. Decreased wages: Free trade can lead to decreased wages in certain industries that face competition from lower-wage countries. This competition can lead to companies outsourcing jobs or pressuring employees to accept lower wages to remain competitive.
3. Higher farm profits: Free trade can provide opportunities for American farmers to export their products to other countries, potentially increasing their profits by accessing larger markets.
4. Less variety in businesses: It is possible that free trade can lead to consolidation in certain industries, reducing the number of businesses and consequently limiting consumer choices.
5. More low-skill jobs: Free trade can result in the creation of more low-skill jobs in certain industries, as companies may choose to relocate labor-intensive activities to countries with lower labor costs.
6. Increased consumer choice: Free trade can lead to increased consumer choice, as it allows access to a wider range of products from different countries at potentially lower prices.
Based on the given options, you can select any two that align with the effects of free trade on the United States.