If trade is restricted, consumers pay higher prices for lower-quality goods.

Name: If trade is restricted, consumers pay higher prices for lower-quality goods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When trade is restricted, the competition decreases and companies increase their prices. Consumers end up paying more for goods that may not be of the same quality as those available in the global market. This leads to a decrease in innovation, efficiency, and productivity as well, resulting in an overall negative impact on the economy.

If Trade Is Restricted, Consumers Pay Higher Prices for Lower-Quality