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Which option best completes the diagram? [?] -> [companies take advantage of lower wages abroad.] -> [american workers lose job opportunities.] a.) foreign investors take control of us companies b.) trade blocs place restrictions on international economic activity c.) free trade allows companies to relocate anywhere on the globe d.) governments enter into a trade agreement to lower taxes on imports

Theresa Perry

in History

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1 answer

Zach Chandler on January 24, 2018

The correct answer is (C) the Free-trade allows companies to relocate to any part of the world. A treaty of free trade system is beneficial in the system that allows countries to trade with each other without restrictions. However, this system has flaws, especially for the united States. Companies of the united states have to pay taxes and mimimum wage according to federal law. In order to avoid these costs, American companies will go where they can buy cheaper land, pay lower wages and pay less taxes, in order to save money. This affects the economy of the united states, as it results in less jobs available for American citizens.

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