Which of the following is NOT an expected benefit of reducing nontariff barriers to trade?
A)Fewer firms to compete with
B)Lower prices for many goods
C)Increase in the volume of exports and imports
D)Increase in production levels
E)Improved overall economic welfare

Question

Quizplus · Accepted Answer

Reducing nontariff barriers to trade typically leads to increased competition, greater trade flows, higher production levels, and improved economic welfare. However, it would not result in fewer firms to compete with. In fact, reducing barriers to entry may encourage more firms to enter the market and compete with existing firms.

Which of the Following Is NOT an Expected Benefit of Reducing