Which of the following best explains recent governmental relaxation of restrictions on cross-border trade or resource movements?
A) Most countries face shortages of workers, so they seek immigrants who can help them produce more.
B) Governments believe that this will decrease the need to make their own companies more innovative.
C) Consumers increasingly want to buy goods and services produced in their own countries, making restrictions less necessary.
D) Governments believe that domestic producers will become more efficient as a result of foreign competition.

Question

Quizplus · Accepted Answer

The relaxation of restrictions on cross-border trade or resource movements is most likely due to the belief that domestic producers will become more efficient as a result of foreign competition. This competition forces domestic producers to work more efficiently and produce higher quality goods in order to remain competitive in the global market.

Which of the Following Best Explains Recent Governmental Relaxation of Restrictions