If all countries try to expand their exports and restrict their imports through the use of export subsidies and import tariffs, the net effect will probably be

Question

Quizplus · Accepted Answer

When countries restrict imports and expand exports using tariffs and subsidies, it leads to retaliation by other countries which often results in a decrease in the volume of international trade. This can also lead to a decline in the average living standards as the cost of goods increases due to higher tariffs. Therefore, choice D is the correct answer.

If All Countries Try to Expand Their Exports and Restrict