Trade barriers prevent a nation from reaping the benefits of specialisation, lead to relatively inefficient production techniques, and mean consumers pay higher prices for protected products than they would otherwise pay.

Question

Quizplus · Accepted Answer

Trade barriers such as tariffs and quotas can limit a country's ability to specialize in producing goods where they have a comparative advantage, leading to inefficiencies and higher prices for consumers.

Trade Barriers Prevent a Nation from Reaping the Benefits of Specialisation