- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 1. International Trade
CFA Practice Question
Free trade will ______
B. benefit workers who make goods that are imported, harm workers who make goods that are exported, and harm the nation as a whole.
C. harm workers who make goods that are imported, benefit workers who make goods that are exported, and benefit the nation as a whole.
A. harm workers who make goods that are imported, benefit workers who make goods that are exported, and harm the nation as a whole.
B. benefit workers who make goods that are imported, harm workers who make goods that are exported, and harm the nation as a whole.
C. harm workers who make goods that are imported, benefit workers who make goods that are exported, and benefit the nation as a whole.
Correct Answer: C
Free trade will lead to an increase in the imports of some goods. This will result in a domestic loss of jobs in those industries. The opposite will happen for exported goods. Overall, however, the nation will be better off.
User Contributed Comments 6
| User | Comment |
|---|---|
| To-be-CFA | Free trade benefit the nation as a whole. |
| Yrazzaq88 | Everyone is a winner when it comes to trading... |
| Inaganti6 | tell that to the steel and aluminum factory workers in the rust belt cities |
| maryprz14 | Tell that to Trump! |
| walterli | USA imported goods too much,the economy heavily relied on foreign products,outsourcing is the problem. |
| walterli | Free trade benefits rich people, it hurts domestic employment. |