which of the following is a disadvantage of foreign trade
-
A.
it encourages dumping -
B.
it widens the world market -
C.
it encourages specialization -
D.
it provides varieties of goods
Correct Answer: Option 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