Which of the following is a benefit of lowering the barriers to international trade?
A) Domestic industries are better protected from foreign competition.
B) Firms can view the world, rather than a single country, as their market.
C) The lowering of barriers promotes communism across the globe.
D) The lowering of barriers puts a brake on globalization of both markets and production.
E) The economies of the members of the WTO become self-contained entities.

Question

Quizplus · Accepted Answer

Lowering barriers to international trade allows firms to expand their customer base from a single country to multiple countries. This can lead to increased sales, profits, and economies of scale.

Note: A is incorrect because protecting domestic industries from competition can actually stifle innovation and competitiveness. C, D, and E are incorrect because there is no evidence to suggest that lowering barriers to international trade promotes communism or hinders globalization.

Which of the Following Is a Benefit of Lowering the Barriers