WAEC - Commerce (2015 - No. 40)

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

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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