Which of the following characterizes the lowering of trade and investment barriers?
A)protects domestic industries from foreign competition
B)was not an agenda of the Uruguay Round
C)allows firms to base production at optimal locations outside their home country
D)creates an unfavorable environment for FDI
E)caused the Great depression of the 1930s

Question

Quizplus · Accepted Answer

Lowering of trade and investment barriers allows firms to base their production at optimal locations outside their home country, as they can now access foreign markets with ease. This can lead to an increase in foreign direct investment and a more efficient allocation of resources on a global scale. The other options are incorrect; protecting domestic industries from foreign competition would be a rationale for keeping trade barriers high, the Uruguay Round was focused on lowering barriers, creating an unfavorable environment for FDI would be a negative outcome of raised barriers, and the Great Depression was caused by a host of factors unrelated to trade policy.

Which of the Following Characterizes the Lowering of Trade and Investment