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Kobotan [32]
3 years ago
8

2. Which statement explains why there are mutual benefits to free trade policies? * D

History
1 answer:
KatRina [158]3 years ago
6 0

Answer:

Without trade barriers, nations can specialize, which allows them to take advantage of their unique  resources.

Explanation:

Trade barriers are all kinds of government activities or regulations restricting the freedom of international trade.

Most trade barriers are characterized by the same mechanism, that is, by imposing various types of artificially generated costs on trade, so that the price of the good which is the subject of it increases. They are intended to favor or protect domestic producers by excluding them from an equivalent market. This is at the expense of the consumer's interests because he must pay more for goods and services that would normally be available to him at lower prices.

Theoretically speaking, the free market removes all trade barriers except those that harm public health and safety. In practice, even those countries that promote free trade rules intensively subsidize certain areas of the economy, such as agriculture and the metallurgy industry.

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