Calls for protectionism are most likely to occur under
A)a fixed exchange rate system
B)a flexible exchange rate system
C)a pegged exchange rate system
D)the IMF approach to balance of payments problems
E)a system of target zones

Question

Quizplus · Accepted Answer

Protectionism is more likely under a flexible exchange rate system because exchange rate fluctuations can lead to trade imbalances, prompting calls for protective measures to shield domestic industries from foreign competition.

Calls for Protectionism Are Most Likely to Occur Under