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     EduGorilla 
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    Directions: Read the following passage and answer the given question:

    The Great Recession has not been great for free trade. As unemployment has risen throughout the world, governments have become more focused on protecting their own industries than on promoting international commerce. The US, though typically an enthusiastic supporter of open markets, has included “buy American” clause in its stimulus package and propped up its flailing auto industry with handouts. But according to the Asian Development Bank (ADB), in the part of the world that was hit hardest by the trade crash – Asia, the number of Free Trade Agreements (FTAs) signed by Asian countries has grown from just three in 2000 to fifty-six by the end of August 2009. Nineteen of those FTAs are among 16 Asian economies, a trend that could help the region become a powerful trading block. The drive to lower trade barriers has taken on fresh urgency amid the recession. As Asian manufacturing networks become more intertwined, and as Asian consumers become wealthier, regional commerce is becoming critical to future economic expansion. Intraregional trade last year made up 57% of total Asian trade, up from 37% in 1980. In the past, Asia produced for America and Europe, now Asia is producing for Asia.

    Of course, Asia is still dependent for sales on the West. But FTAs could reduce the region’s exposure to the US by giving Asian companies preferential treatment in selling to Asian companies and consumers. However, these benefits could come with downsides. According to the experts, FTAs create a non-level playing field with advantages for Asian countries. If, the most dynamically growing part of the global economy gives the US restricted access, it will impact global balance. Companies in countries like the US which left out of the trade pacts could face disadvantages, when they will try to tap fast growing Asian markets. This, in turn, could have a negative impact on efforts to rebalance excessive debt in the US and excessive savings in Asia. Still, the benefits of greater regional integration could prove powerful enough to overcome the roadblocks. If they do, the world economy may never be the same.

    Which of the following can be said about the American economy in context of the passage? 

    (A) Most American companies have opted to withdraw from Asia.

    (B) America’s stand on free trade has altered because of the recession.

    (C) The American economy is far too dependent on Asia for trade.

    Options :-

    1. Only (A)

    2. Only (B)

    3. Only (C)

    4. (A), (B) and (C)

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Reply To: Directions: Read the following passage and answer the given question:The Great Recession has not bee….
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