The United States signs a free trade agreement with another country that has dramatically different resources. How would this trade treaty affect the United States?
A:Businesses will most likely not offer a variety of products.
B:Consumers will face higher prices as trade deficits increase.
C:Industries will increasingly focus on using interdependence.
D:Producers will be put out of business as more interesting products enter the market.
C: Industries will increasingly focus on using interdependence.
When the United States signs a free trade agreement with another country that has dramatically different resources, it would likely lead to an increase in interdependence between the two countries. This means that industries in the United States would increasingly rely on the resources or products offered by the other country, and vice versa. This can lead to specialization and efficiency gains, as each country can focus on producing the goods or services in which they have a comparative advantage. This can ultimately benefit the United States by increasing productivity, expanding market opportunities, and promoting economic growth.