Which of the following is given as a reason for nations NOT to engage in free trade?
A) Free trade gives consumers access to goods they might not otherwise be able to consume
B) Tariffs are a good source of revenue for a nation
C) Trade is shown to promote peace among nations
D) National Security
Can SA have free trade with other world
The reason for nations NOT to engage in free trade is given in option D) National Security. To understand this reason, let's break down the options and analyze each one:
A) Free trade gives consumers access to goods they might not otherwise be able to consume. This option actually supports free trade by highlighting the advantages it brings to consumers. It suggests that free trade expands consumer choices by allowing access to goods from different countries.
B) Tariffs are a good source of revenue for a nation. This option presents a benefit of imposing tariffs, which are taxes on imported goods. While tariffs can generate revenue for a nation, they are often seen as trade barriers that hinder free trade. Therefore, this option does not directly oppose free trade.
C) Trade is shown to promote peace among nations. This option also supports free trade by highlighting its potential to promote peace. It suggests that through trade interactions, countries can develop economic ties, which may reduce conflicts and foster international cooperation.
D) National Security. This option provides a reason against free trade. National security concerns can arise when a nation heavily depends on imports for critical goods or services. If a country relies on other nations for essential resources like food, energy, or defense equipment, disruptions in trade could impact its ability to meet its own needs or defend itself. Thus, concerns about national security can prompt a nation to limit free trade to protect its self-sufficiency and strategic interests.
In summary, the reason given for nations NOT to engage in free trade is D) National Security, as it highlights the importance of safeguarding a country's self-sufficiency and strategic capabilities in the face of potential trade disruptions.