Trade protection in most instances transfers wealth from consumers to domestic producers.

Question

Quizplus · Accepted Answer

This is because trade protection often results in higher prices for consumers due to tariffs or import quotas, which benefit domestic producers by reducing competition from foreign firms. As a result, domestic producers are able to charge higher prices and earn higher profits at the expense of consumers who have to pay more for the same goods or services.

Trade Protection in Most Instances Transfers Wealth from Consumers to Domestic