The president of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions. What kind of policies are these?
A) These are outward-oriented policies and most economists believe they would have beneficial effects on growth.
B) These are outward-oriented policies and most economists believe they would have adverse effects on growth.
C) These are inward-oriented policies and most economists believe they would have beneficial effects on growth.
D) These are inward-oriented policies and most economists believe they would have adverse effects on growth.

Question

Quizplus · Accepted Answer

The proposed trade restrictions are inward-oriented policies which involve limiting imports and protecting domestic industries from foreign competition. Most economists believe these policies would have adverse effects on growth as they discourage competition and innovation, leading to inefficiencies and higher costs for consumers. Additionally, trade restrictions can lead to retaliation from trading partners, reducing export opportunities and further damaging the economy.

The President of a Developing Country Proposes That His Country