If all countries try to expand their exports and restrict their imports through the use of export subsidies and import tariffs,the net effect will probably be

Question

Quizplus · Accepted Answer

When countries try to expand their exports and restrict imports through export subsidies and import tariffs, it leads to retaliation from other countries, which would reduce the volume of trade. This would result in a decline in the average living standards in each country due to the higher prices of imported goods and reduced opportunities for export. It may also lead to a trade war that could harm global economic growth. Therefore, option B is the best choice.

If All Countries Try to Expand Their Exports and Restrict