Question

Which is an argument in favor of free trade? A)Placing caps on trade levels will help insure fair competition among all sides. B)Fewer trade barriers will lead to increased trade, production, and revenues for all sides. C)Import duties will help maintain fairer pricing structures in all the countries involved. D)Government subsidies to private companies will allow those companies to export more of their goods.

Answer 1

The answer that suits best as the argument in the favor of free trade is: B) fewer trade barriers will lead to increased trade, production, and revenues for all sides.

As we know that if the barriers on trade practices are reduced, it would lead to better and free trade between the countries.

Organizations prefer dealing with countries that have fewer trade barriers and as such the fewer the trade barriers the more is an impetuous for free trade.