Multiple Choice
Which of the following are two potential drawbacks of government intervention in free trade?
68
views
9. International Trade
Arguments Against International Trade
Multiple Choice
Which of the following is a negative effect associated with current patterns in global trade?
A
Universal improvement in labor standards
B
Increased income inequality within countries
C
Reduction in environmental concerns
D
Elimination of trade barriers for all nations
Verified step by step guidance1
Step 1: Understand the context of global trade and its common effects. Global trade involves the exchange of goods and services across countries, which can have both positive and negative impacts on economies and societies.
Step 2: Identify the meaning of each option: 'Universal improvement in labor standards' suggests that all countries improve working conditions, which is generally positive; 'Reduction in environmental concerns' implies less environmental damage, which is unlikely given current trade patterns; 'Elimination of trade barriers for all nations' means all tariffs and restrictions are removed, which is an ideal but not a current reality.
Step 3: Focus on 'Increased income inequality within countries' — this refers to the widening gap between rich and poor within nations, a well-documented negative effect linked to globalization and trade liberalization, where benefits are not evenly distributed.
Step 4: Recall that while global trade can boost overall economic growth, it often leads to uneven gains, causing some groups to benefit more than others, thus increasing income inequality within countries.
Step 5: Conclude that among the options, 'Increased income inequality within countries' is the negative effect associated with current patterns in global trade, as it reflects a real and significant challenge observed in many economies.
Related Videos
Related Practice
