Question

Do the economic benefits of free trade outweigh the social costs? Explain your answer.

Answer 1

Explanation:

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

Do the economic benefits of free trade outweigh the social costs?

Not really, and it all depends on the perspective.

From the big companies and industrial side, free trade has been a success. Free trade has allowed thousands of companies to export their goods with cero import tariffs, benefiting the income. It has allowed multinational companies to go abroad and establishing branches in different parts of the world, basically in underdeveloped nations.

Once there, they paid very low salaries, much less than what they should have paid in their former countries, That is a reason why they moved to underdeveloped countries. So cheap labor is one reason. And other these multinational companies freely exploit the many raw materials and natural resources of that underdeveloped country.

Meanwhile, free trade makes rich people and corporations richer, and poor countries and poor people continue to be as poor as they have always been. No serious progress at all,