Asked by Brandon Underhill on May 19, 2024
Verified
Barriers to free trade impair efficiency in the international allocation of resources.
Barriers to Free Trade
Restrictions, such as tariffs, quotas, and regulations, imposed by governments to control international trade and protect domestic industries.
International Allocation
The distribution of resources, goods, or capital among countries around the globe according to various economic factors and policies.
- Gain insight into the effects of tariffs, quotas, and free trade on the efficiency of international commerce.
- Gain an insight into the economic arguments for and against free trade, along with the diverse impediments to trading activities.
Verified Answer
MA
mariam alfatlawiMay 24, 2024
Final Answer :
True
Explanation :
Barriers to free trade, such as tariffs and quotas, can lead to inefficiencies by distorting market prices and preventing the most efficient allocation of resources across countries, which can hinder global economic welfare.
Learning Objectives
- Gain insight into the effects of tariffs, quotas, and free trade on the efficiency of international commerce.
- Gain an insight into the economic arguments for and against free trade, along with the diverse impediments to trading activities.