An argument in favour of imposing higher trade barriers is that they may*1 pointdiscourage foreign trade investmentresult in greater customer choiceencourage more importsprotect important or new industries
Question
An argument in favour of imposing higher trade barriers is that they may*1 pointdiscourage foreign trade investmentresult in greater customer choiceencourage more importsprotect important or new industries
Solution
The argument in favor of imposing higher trade barriers is that they can protect important or new industries. Here's a step-by-step explanation:
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Trade barriers, such as tariffs and quotas, increase the cost of importing goods.
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When imports become more expensive, domestically produced goods become more competitive in comparison.
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This can protect new or important industries from foreign competition, allowing them to grow and establish themselves.
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For example, a country might impose trade barriers to protect its agricultural sector, ensuring that local farmers can sell their produce without being undercut by cheaper imports.
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Over time, this can lead to the development of strong, competitive industries that can hold their own against foreign competition.
So, while trade barriers can discourage foreign trade investment and limit customer choice, they can also play a crucial role in protecting and nurturing important or new industries.
Similar Questions
An argument in favour of imposing higher trade barriers is that they may
Which of the following applies to the argument that trade barriers can help a country improve its terms of trade? Multiple choice question.This strategy works by increasing the global demand of the relevant product.The intention of a trade barrier in this case is to reduce the global price of the relevant product.This argument is relevant when a country is a minor global importer of a particular product.
Complete the following statement: Trade barriers can be used to protect domestic jobs. A restriction on imports will increase demand for goods. This will increase the derived demand for and increase employment.
Creating barriers to trade can lead to which problem?A.Consumers will be more likely to buy luxury goods in foreign markets.B.Domestic businesses will face more competition from foreign companies.C.Other countries will retaliate by creating their own barriers to trade.D.The country will become overly reliant on foreign countries.
Trade barriers can be beneficial to a country because they:A.prevent the country from becoming too reliant on foreign goods.B.increase the variety of consumer goods available in the country.C.lower the overall cost of producing goods within the country.D.make businesses in the country more efficient at producing goods.
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