Which of the following is NOT typically expected as a result of international trade?

• A. Access to a wider variety of goods
• B. Increased market efficiency
• C. Greater consumer choice
• D. Higher prices due to reduced competition

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the basic benefits of international trade. Typically, international trade allows countries to specialize in producing goods where they have a comparative advantage, leading to increased efficiency and productivity.
2. Step 2: Recognize that international trade usually results in access to a wider variety of goods because countries import products that are not produced domestically or are produced more efficiently elsewhere.
3. Step 3: Note that increased market efficiency is a common outcome of trade, as resources are allocated more effectively across countries, reducing costs and improving overall economic welfare.
4. Step 4: Understand that greater consumer choice is another typical benefit, as consumers can buy from a larger selection of goods and services from different countries.
5. Step 5: Analyze the statement about higher prices due to reduced competition. Since international trade generally increases competition by introducing foreign producers into the domestic market, prices tend to decrease or stabilize rather than increase. Therefore, higher prices due to reduced competition is NOT typically expected as a result of international trade.