Free trade generally lowers prices and increases the availability of goods for consumers, benefiting them. Protectionism, through tariffs and quotas, can protect domestic industries from foreign competition, potentially benefiting businesses more by providing them with a more favorable market environment.

Solved

You Would Expect

Question 127

Multiple Choice

You would expect:

A) businesses to benefit more than consumers from both free trade and protectionism.
B) consumers to benefit more than businesses from both free trade and protectionism.
C) businesses to benefit more than consumers from free trade, and consumers to benefit more than businesses from protectionism.
D) consumers to benefit more than businesses from free trade, and businesses to benefit more than consumers from protectionism.

Correct Answer: