Which of the following is NOT an effect of free trade?

A. Increased prices of goods due to manufacturing costs
B. Flow of goods, workers, and ideas more easily
C. Lowered wages due to foreign competition
D. Lowered poverty rates in some countries



Answer :

Final answer:

Free trade can impact wages and poverty rates but does not necessarily cause increased prices due to manufacturing costs.


Explanation:

Increased prices of goods due to manufacturing costs is NOT an effect of free trade. When countries engage in free trade, prices of exported goods rise, while imported goods become cheaper. Free trade can lead to lowered wages due to foreign competition and lowered poverty rates in some countries. Overall, free trade can result in differing impacts on various industries and workers within the economy.


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