10
QuizMultiple Choice

The Modern Global Economy — Quiz

Question 10 • US History

Which situation is a negative effect of international trade?

Answer
A
decreased goods and services
B
job loss due to outsourcing
C
specialization within countries
D
competition for best prices

Explanation

International trade can lead companies to move some work to other countries, a practice called outsourcing. When jobs are moved abroad, workers in the original country may lose their jobs, making job loss due to outsourcing a negative effect. Specialization and competition for better prices are generally benefits of trade.

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