Trade protection in most instances transfers wealth from consumers to domestic producers and
government.

Question

Quizplus · Accepted Answer

Trade protection, such as tariffs or quotas, increases the price of imported goods, which leads to higher profits for domestic producers at the expense of consumers. The government also benefits from increased revenue through tariffs. This transfer of wealth is a fundamental purpose of trade protection.

Trade Protection in Most Instances Transfers Wealth from Consumers to Domestic