Question

question 7 (multiple choice worth 5 points)
(01.05r mc)

which option is the best example of a negative effect of international trade on a small local health food store?

they are able to reach more customers to increase sales and revenue.
they can create more job opportunities as their business grows.
they have greater access to global supply chains for buying their products.
trade policies can increase their costs and decrease their profits.

Explanation:

Identify the core question

The question asks for the best example of a negative effect of international trade on a small local health food store.

Analyze the first option

"They are able to reach more customers to increase sales and revenue."

• This describes a positive outcome (increased sales and revenue) rather than a negative effect.

Analyze the second option

"They can create more job opportunities as their business grows."

• This describes a positive outcome (business growth and job creation) rather than a negative effect.

Analyze the third option

"They have greater access to global supply chains for buying their products."

• This describes a positive outcome (better sourcing options and supply chain access) rather than a negative effect.

Analyze the fourth option

"Trade policies can increase their costs and decrease their profits."

• This describes a negative outcome (increased costs and decreased profits) resulting from international trade regulations, tariffs, or policies. This directly answers the prompt.

Answer:

• They are able to reach more customers to increase sales and revenue.
• They can create more job opportunities as their business grows.
• They have greater access to global supply chains for buying their products.
• Trade policies can increase their costs and decrease their profits. (Correct answer)