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Which option best completes the diagram?

A. Governments enter into a trade agreement to lower taxes on imports.
B. Trade blocs place restrictions on international economic activity.
C. Free trade allows companies to relocate anywhere on the globe.
D. Foreign investors take control of U.S. companies.

Answer :

The best completion for the diagram would be c. free trade enables companies to relocate globally.

The correct option is c.

The option that best completes the diagram would be c. free trade allows companies to relocate anywhere on the globe. Free trade refers to the absence of barriers and restrictions in the exchange of goods and services between countries.

In a free trade environment, companies have the flexibility to establish operations and relocate their businesses to different parts of the world based on various factors such as cost advantages, market access, and availability of resources.

By embracing free trade, companies can take advantage of lower labor costs, access to new markets, and favorable business environments in different countries. This can lead to increased competitiveness, improved efficiency, and expansion opportunities for businesses.

However, it's important to note that free trade can also have social and economic implications, such as job displacement or income inequality, which need to be addressed by appropriate policies and regulations.

Overall, the concept of free trade promotes global economic integration and allows companies to explore and capitalize on opportunities across international borders, making option c the most fitting completion for the diagram.

The correct option is c.

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