Japan's trade policies with regard to rice reflect the fact that
A) japanese rice farmers have significant political power.
B) Japan imports most of the rice consumed in the country.
C) Japan has a comparative advantage in rice production and therefore exports most of its rice crop.
D) there would be no gains from trade available to Japan if it engaged in free trade in rice.
E) there are gains from trade that Japan captures by engaging in free trade in rice.

Question

Quizplus · Accepted Answer

Japanese rice farmers have significant political power and have been able to influence Japan's trade policies with regard to rice. Japan heavily protects its domestic rice industry through tariffs and import restrictions, as a result of lobbying efforts by domestic producers. This has led to a high price of rice in Japan, which is often two to three times higher than in other countries.

Japan's Trade Policies with Regard to Rice Reflect the Fact