WAEC Commerce 2015 Question 42

Question 42

Foreign Trade

Which of the following is a disadvantage of foreign trade?

  1. A.It encourages dumping
  2. B.It widens the world market
  3. C.It encourages specialization
  4. D.It provides variety of goods
Show the answer and explanation

Answer: A (It encourages dumping)

Explanation

Foreign trade can lead to dumping of cheap goods that harm local industries.