5. Free-trade benefits

In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario:

Chairtopics Inc. is a firm operating in a small economy. If Chairtopics Inc. can produce more goods, it can do so at a lower cost per unit. When the economy opens itself up to international trade, Chairtopics Inc. is able to enjoy these lower costs since it can now serve a larger market.

The previous scenario represents which of the following benefits of free trade?

An enhanced flow of ideas

Increased variety of goods

Lower costs through economies of scale

Increased competition

Back to Assignment Attempts I:I:I:| Keep the Highest 0 l 1 5. Free-trade benets In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario: Chairtopics Inc. is a rm operating in a small economy. If Chairtopics Inc. can produce more goods, it can do so at a lower cost per unit. When the economy opens itself up to international trade, Chairtopics Inc. is able to enjoy these lower costs since it can now serve a larger market. The previous scenario represents which of the following benets of free trade? An enhanced ow of ideas Increased variety of goods Lower costs through economies of scale 0000 Increased competition rade It Now Save 8: Continue Continue without saving