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which of the following is a disadvantage of foreign trade

which of the following is a disadvantage of foreign trade
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • 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

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