QuestionMay 24, 2025

The result of free trade between nations is that: goods can be produced in the location where their opportunity cost is the lowest. developing nations benefit;wealthy countries lose. wealthy countries benefit;developing nations lose. the worldwide level of unemployment increases.

The result of free trade between nations is that: goods can be produced in the location where their opportunity cost is the lowest. developing nations benefit;wealthy countries lose. wealthy countries benefit;developing nations lose. the worldwide level of unemployment increases.
The result of free trade between nations is that: goods can be produced in the location where their opportunity cost is the lowest. developing nations benefit;wealthy countries lose. wealthy countries benefit;developing nations lose. the worldwide level of unemployment increases.

Solution
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Answer

Goods can be produced in the location where their opportunity cost is the lowest. Explanation 1. Identify the Principle of Comparative Advantage Free trade allows goods to be produced where their opportunity cost is lowest, based on the principle of comparative advantage. 2. Evaluate Economic Impact Free trade generally benefits all participating countries by allowing them to specialize in producing goods where they have a comparative advantage, leading to increased efficiency and economic growth.

Explanation

1. Identify the Principle of Comparative Advantage<br /> Free trade allows goods to be produced where their opportunity cost is lowest, based on the principle of comparative advantage.<br /><br />2. Evaluate Economic Impact<br /> Free trade generally benefits all participating countries by allowing them to specialize in producing goods where they have a comparative advantage, leading to increased efficiency and economic growth.
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