Question

multiple select question
select all that apply
from the following list, identify all of the negative effects of trade.
□ unemployment and pay cuts
□ reduced access to world markets
□ risks to trade secrets
□ exploitation of international tax havens

Explanation:

• Unemployment and pay cuts: When domestic industries face competition from cheaper imported goods, they may downsize or cut wages, harming workers.
• Reduced access to world markets: This is a restriction on trade, not a negative effect of trade itself; trade typically expands market access.
• Risks to trade secrets: Global trade increases interaction with foreign entities, raising the chance of proprietary information being stolen or leaked.
• Exploitation of international tax havens: Multinational firms may use trade networks to shift profits to tax havens, reducing tax revenues for nations and creating unfair advantages.

Answer:

A. Unemployment and pay cuts
C. Risks to trade secrets
D. Exploitation of international tax havens