Import quotas have a negative impact on poor nations because they make it difficult for poor nations to
A)Sell agricultural goods to each other.
B)Sell agricultural goods to rich nations.
C)Receive foreign aid from rich nations.
D)Develop a pro-business environment.

Question

Quizplus · Accepted Answer

Import quotas limit the amount of goods that can be imported into a country, so it becomes difficult for poor nations to sell their agricultural goods to richer nations. This, in turn, deprives poor nations of valuable foreign exchange earnings, making it harder for them to develop economically. Additionally, import quotas artificially inflate the price of goods, making it more difficult for poor nations to access the goods they need.

Import Quotas Have a Negative Impact on Poor Nations Because