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QUESTION IMAGE

which of the following describes one of the major drawbacks of free tra…

Question

which of the following describes one of the major drawbacks of free trade between countries?

a. companies are unable to make decisions based on profits if the global environment might be effected.

b. governments are given too much direct control over the economy, leading to inefficiency.

c. intergovernmental organizations are given the right to regulate and monitor international trade.

d. workers may lose their jobs if their employer decides to relocate to a country with cheaper labor.

Explanation:

Brief Explanations

Free - trade can lead to companies relocating to countries with cheaper labor to cut costs. This often results in job losses for workers in the home country. Option A is incorrect as companies can still make profit - based decisions. Option B is wrong because free - trade generally reduces government control over the economy. Option C is not a drawback of free - trade itself; intergovernmental organizations regulating trade can have both positive and negative aspects but is not a major drawback like job losses.

Answer:

D. Workers may lose their jobs if their employer decides to relocate to a country with cheaper labor.