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Highlight any five negative effects of free trade to a country.

      

Highlight any five negative effects of free trade to a country.

  

Answers


johnson
i)May cause unemployment-Citizens of a member country may fail to get employment where more qualified
people move to other member countries.

(ii) May lead to closure of local industries/businesses - Cheap goods from other countries may flood the local market therefore forcing local industries to close down.

iii) Leads to loss of government revenue - Government of a member country losses revenue she would have collected in
terms of customs duty for imported or exported goods.

(iv) May compromise country's political ideology - If a country wants to fit in an economic bloc, she might have to change her
political ideologies to align with the other members.

(v) Loss of opportunity to obtain cheaper commodities - Due to restrictions on non-member countries, cheaper commodities from non-member countries may not reach the citizens of member countries
johnson mwenjera answered the question on February 11, 2018 at 18:51


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