Asked by Jordan Canales on Jun 30, 2024
Verified
Which of the following groups is likely to lose from free trade?
A) Producers of an industry that has been protected from foreign competition
B) Consumers purchasing goods and services
C) Firms aware of the potential gain from free trade
D) Foreign producers buying quota rights to sell goods in the domestic market
E) Domestic producers importing raw materials for the production of manufactured goods
Free Trade
An economic policy that allows imports and exports between countries with minimal governmental restrictions or tariffs.
Foreign Competition
The presence of competing products or services from other countries in a domestic market.
Domestic Producers
Individuals or entities within a country that produce goods or services.
- Master the understanding of the strengths and weaknesses of export promotion and import substitution methodologies for economic prosperity.
- Identify barriers and political issues associated with the implementation of more liberal international trade.
Verified Answer
LC
Lindsay ClemensJul 03, 2024
Final Answer :
A
Explanation :
Producers of an industry that has been protected from foreign competition are likely to lose from free trade as they will now face competition from foreign producers who may have a comparative advantage in producing those goods, leading to a decrease in demand for their products and a decline in their profits.
Learning Objectives
- Master the understanding of the strengths and weaknesses of export promotion and import substitution methodologies for economic prosperity.
- Identify barriers and political issues associated with the implementation of more liberal international trade.
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