which of the following is a disadvantage of foreign trade
-
it encourages dumping
- it widens the world market
- it encourages specialization
- it provides varieties of goods
The correct answer is: A
Explanation
Excessive exports may cause quick depletion of natural resources of a country. Foreign trade may promote lopsided development if only those goods which have comparative cost advantage are produced in a country and lead to dumping of locally produced goods