Asked by Addie Maxwell on May 08, 2024

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Which of the following is not an argument against free trade?

A) Diversification and defense
B) Comparative advantage
C) Dumping by monopolistically inclined exporters
D) Infant industries

Free Trade

A policy to eliminate discrimination against imports and exports, allowing goods to move freely between countries without tariffs or quotas.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than its competitors.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its cost of production or lower than the price in its domestic market.

  • Consider the supporting and opposing viewpoints regarding free trade.
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NM
Naomi McCulloughMay 12, 2024
Final Answer :
B
Explanation :
Comparative advantage is actually an argument in favor of free trade, as it suggests that countries should specialize in producing the goods they are most efficient at producing and trade for the goods they are less efficient at producing. A, C, and D are all arguments against free trade, with A referring to the importance of diversifying a country's economy and protecting it from external shocks, C referring to the unfair competition that can be posed by monopolistic exporters, and D referring to the need to protect new and emerging industries from established competitors.