Which of the following is NOT a benefit of trade?

Study for the VirtualSC Economics Honors Exam. Utilize flashcards and multiple-choice questions, each with hints and explanations. Get prepared for your exam!

Access to a greater variety of goods, lower prices for consumers, and more efficient resource allocation are all well-established benefits of trade. When countries trade, they can specialize in producing goods and services in which they have a comparative advantage, leading to a wider selection of products available in the market. This specialization usually results in lower production costs, which can translate into lower prices for consumers. Additionally, trade enhances resource allocation by allowing countries to utilize their resources more effectively, producing goods where they are most efficient.

In contrast, increased job security for all citizens is not a universal benefit of trade. While trade can create jobs in specific sectors or industries, it can also lead to job losses in others, particularly in industries that are less competitive on a global scale. The balance of job creation and loss can vary based on numerous factors, including government policies, workforce adaptability, and economic conditions. Thus, while some individuals may experience more job security as a result of increased trade, it is not guaranteed for all citizens.

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