Country X is withholding goods from international markets in an attempt to raise prices abroad.Such actions will be most effective for Country X if the nation ________.

Question

Quizplus · Accepted Answer

Holding a monopoly on the product or resource is the best choice for Country X to make withholding goods effective. If Country X has a monopoly, then it can control the supply of the product or resource and demand higher prices from international markets. This strategy will not be effective if there are substitutes available in the market. Providing tax breaks to domestic industries or receiving low-interest loans from foreign banks may help Country X maintain its competitiveness in the market, but they are not directly related to raising prices abroad.

Country X Is Withholding Goods from International Markets in an Attempt