Free Trade and Trade Protection (id: 535c1c2c5)

本题目来源于试卷: Free Trade and Trade Protection，类别为 IB经济学

[单选题]
Identify which of the followi()(gpxo y kvk,ng are arguments aanrts k :7pv:4gainst trade protection.

I. Possible retaliation by trading partners.
II. Higher prices and inefficient allocation of resources.
III. Protection of domestic jobs.
IV. Increased export competitiveness.

A. I and II only
B. I and III only
C. I, II and IV only
D. I, III and IV only


参考答案:  A


本题详细解析:

A

$\underset{‾}{\text{Explanation}}$:
Statement I: Trading partners often retaliate with their own forms of trade protection and this may set off a trade war.

Statement II: Tariffs and other forms of trade protection often lead to higher prices and create a welfare loss, thus resulting in an inefficient global allocation of resources.

Statement III: Protecting domestic jobs is a commonly cited argument for trade protection, because competition against lower-priced imports can lead to job losses in domestic industries.

Statement IV: If trading partners retaliate with their own trade protection measures then the country’s exports will be more expensive and less competitive, not more competitive.

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