Question

Which statement BEST supports the argument that countries should engage in free trade? a. Free trade encourages less wealthy countries to develop mixed market economies b. Free trade eliminates the need for exporters to pursue greater comparative advantages c. Free trade eliminates the need for importers to rely on absolute advantages d. Free trade encourages countries to allocate their resources more efficiently

Answer 1

Answer:

d. free trade encourages countries to allocate their resources more efficiently

Explanation:

Free trade is simply a type of trade that takes place between countries without any obstacle to it e. g tariff that is set up by governments or international organizations.

In this free trade, Goods and services are allowed to move freely between countries. World Trade Organisation (WTO) is ann international body that sets the rules/regulations for global trading and handles disputes between its member countries. Free trade is said to lead to efficiency as it increases competition thereby increasing efficiency and quality of goods produced therefore lowered costs of production.