4. The great economist Joseph Schumpeter coined the term ""creative destruction"" to characterize the free market economy. Why should governments facilitate competitive markets and free international trade if competition is inherently destructive?

As the competition progress, certain corporations or firms can have competitive advantages that allows them to excel in the process of production and lower the costs while introducing new innovative technologies with the help of economies of scales.

This can lead to monopolies that eventually exploit the customers and harm the environment and communities around them. It is because of this, that the free trade and free market have to be promoted and protected by the government.

Explanation:

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