Question
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Many people fear world trade because it: (A) will inevitably lead to inflation. (B) will cause living standards to increase at a slower rate. (C) causes some people to lose their jobs as production shifts abroad. (D) has brought entire nations out of poverty.

Ask by Spencer Carter. in the United States
Jan 30,2025

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Many people fear world trade because it causes some jobs to be lost as production moves to other countries.

Solution

To analyze the options regarding why many people fear world trade, let's break down each statement: (A) **will inevitably lead to inflation.** This statement is not universally true. While trade can influence prices, it does not necessarily lead to inflation. Inflation is affected by various factors, including monetary policy and supply chain dynamics. (B) **will cause living standards to increase at a slower rate.** This is a subjective statement and can vary based on different economic contexts. Some argue that trade can enhance living standards, while others believe it may slow growth in certain sectors. (C) **causes some people to lose their jobs as production shifts abroad.** This is a well-documented concern. Global trade can lead to job losses in certain industries as companies move production to countries with lower labor costs. This is a significant reason for fear and opposition to trade. (D) **has brought entire nations out of poverty.** While this statement is true for some countries, it does not address the fear aspect. The positive outcomes of trade do not alleviate the concerns of those who may be negatively affected. Based on this analysis, the most accurate answer to why many people fear world trade is: **(C) causes some people to lose their jobs as production shifts abroad.**

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One common concern about world trade is the impact on local job markets. When production shifts to countries with lower labor costs, some workers may find themselves facing layoffs or fewer job opportunities in their own country. This shift can lead to anxiety about job security and a perceived threat to local industries, stirring fears of economic instability. However, it's important to note that while globalization may displace some jobs, it also creates new ones and opens up opportunities for growth in other sectors. Embracing the challenges of trade can lead to innovation and the development of skills that keep up with a changing economy. Balancing these shifts can be tricky, but with the right support systems, many countries have thrived through global trade by tapping into new markets and ideas.

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