The net effect on welfare from eliminating trade barriers is

Question

Quizplus · Accepted Answer

Eliminating trade barriers, such as tariffs and quotas, leads to increased competition, greater specialization, and lower prices for consumers, which generally results in a net positive effect on welfare. This is supported by empirical evidence and economic theory, which suggests that free trade leads to gains from trade and increased economic efficiency. However, there may be some short-term adjustment costs for certain domestic industries or workers who face increased competition from foreign producers. Overall, the long-term benefits of free trade tend to outweigh any short-term costs.

The Net Effect on Welfare from Eliminating Trade Barriers Is