The movement to free international trade is most likely to generate short-term unemployment in which industries ?
Correct answer: B. Imports competing industries
- A. Industries in which there are neither imports nor exports
- B. Imports competing industries
- C. Industries that sell to domestic and foreign buyers
- D. Industries that sell to only foreign buyers
Explanation
Free trade exposes import-competing industries to greater foreign competition, so firms may contract and release workers before resources move into expanding sectors. Export industries generally gain rather than lose employment.
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