Question 69
Foreign TradeWhich of the following is a disadvantage of foreign trade?
- A.Encourages dumping
- B.Makes available the products that a country cannot produce
- C.Widens the world market
- D.Encourages specialization
- E.Makes possible the transfer of technology
Show the answer and explanation
Answer: A (Encourages dumping)
Explanation
Foreign trade exposes a country to dumping of cheap goods that harm home industries.