Question

There is a bias in the political process against free trade because

A.the gains from free trade cannot be measured.

B.foreign governments make large donations to U.S. political campaigns.

C.those who gain from free trade can't compensate those who lose.

D.those who lose from free trade are better organized than those who gain.

E.there is a high correlation between the volume of imports and the unemployment rate.

Answer 1

D. Those who lose from free trade are better organized than those who gain.

Explanation:

Free trade is carried on between two or more countries in order to conduct export and import activities between nations without tariff barriers leading to reduction in the prices of commodities and goods, thereby leads to economic efficiency by increasing import and export.

There is a bias against political process against free trade because those who lose from free trade are better organized than those who gain as this proves to be an obstacle for the extension and growth of uncompetitive domestic industries who are unable to develop or compete with more superior and dominant foreign firms.As a result of this ,they are the ones that suffer the losses no matter how organized they are as they start loosing both customers and revenue.Even a situation of joblessness may also be created for the workers working in such firms.To protect domestic firms ,steps such as tariff imposition by the government can help combat negative effects of free trade on such firms.