Which of the following is/are correct about free Trade? Free Trade attracts foreign capital. Free Trade…
Free trade promotes international specialization and efficiency: it attracts foreign capital and investment (A), curbs domestic monopolistic tendencies through international…
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Which of the following is/are correct about free Trade?
- Free Trade attracts foreign capital.
- Free Trade removes chances of monopolistic tendencies.
- Free Trade provides maximum protection to the interest of consumers.
- Free Trade leads to unfair distribution of wealth.
Answer and explanation
Correct answer A
Free trade promotes international specialization and efficiency: it attracts foreign capital and investment (A), curbs domestic monopolistic tendencies through international competition (B), and protects consumer interests by providing wider variety at lower world prices (C). Statement D is a critique/demerit rather than a positive feature. Thus, A, B, C only is correct.
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UGC NET Management