Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?
A) The trade restrictions make workers in poor countries better off.
B) The trade restrictions make textile consumers better off.
C) Rich countries have a strong need for the revenue from these trade restrictions.
D) The trade restrictions benefit an organised visible special interest in rich countries.

Question

Quizplus · Accepted Answer

The trade restrictions benefit an organized, visible special interest group in rich countries, such as domestic textile producers, who lobby for these restrictions to protect their market from cheaper imports. This helps maintain their business and jobs at the expense of broader consumer interests and economic efficiency.

Which of the Following Reasons Explains Why Rich Countries Persistently