When quotas are eliminated,losers include

Question

Quizplus · Accepted Answer

When quotas are eliminated, domestic producers are likely to face increased competition from foreign producers. This may lead to a decrease in market share and profits for domestic producers, thus making them the losers in the situation. While foreign producers may also experience changes in market dynamics, they are not necessarily the losers as they may still benefit from increased export opportunities. A is incorrect as there can be losers in the establishment of free international trade. C may or may not be correct depending on the impact of the elimination of quotas on specific foreign producers.

When Quotas Are Eliminated,losers Include