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Question
drag each label to the correct category.
the fictional country of kovasia decides to open its market to foreign businesses. what positive and negative effects will kovasia likely experience?
the volume of exports will increase. people may lose jobs to outsourcing. goods and services may become less expensive. domestic products may become less popular.
positive negative
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Brief Explanations
- Positive effects: Market openness expands export opportunities (increasing export volume) and introduces competition/lower-cost imports (reducing prices of goods/services).
- Negative effects: Foreign competition can reduce demand for domestic products (lower popularity) and lead to job losses via outsourcing to cheaper foreign labor.
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| Positive | Negative |
|---|---|
| Goods and services may become less expensive. | Domestic products may become less popular. |