If, in the long run, international trade improves the standards of living in participating countries, why might some countries want to place trade barriers, such as extra taxes, on imported products?
A) Imported products compete with domestic products and thus put pressure on local business.
B) Imported products are usually not as good quality as domestically made products.
C) Generating government revenue is often more economically valuable than free trade.
D) This is necessary to keep a country's currency strong.
E) International trade tends to lead to political tension.

Question

Quizplus · Accepted Answer

A)In the course of international trade, jobs are often initially lost in those industries in which a country does not have a comparative advantage. Trade barriers are used as a way to protect these industries from strenuous competition.

If, in the Long Run, International Trade Improves the Standards