Which of the following is listed as a disadvantage of unrestricted international trade?

• A. Unemployment from unrestricted trade
• B. Higher wages for workers
• C. Increased efficiency
• D. Greater specialization

Answer: (A)

Unrestricted international trade can create job losses in domestic industries that struggle to compete with cheaper imports. When borders open up, some firms shrink or shut down, and workers in those sectors may become unemployed. This is a straightforward downside of trade liberalization, especially in the short to medium term while the economy reallocates resources and workers retrain. The other potential effects described—higher wages for workers, increased efficiency, and greater specialization—are typically viewed as benefits of open trade, since competition and a focus on areas of comparative advantage tend to raise productivity and living standards. Therefore, unemployment from unrestricted trade is the fitting disadvantage being highlighted.