A. it encourages dumping
B. it widens the world market
C. it encourages specialization
D. it provides varieties of goods
Correct Answer: Option A
A. it encourages dumping
Explanation
Excessive exports may cause quick depletion of natural resources of a country. Foreign trade may promote lopsided development if only those goods which have comparative cost advantage are produced in a country and lead to dumping of locally produced goods
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