A country should reduce its barriers to import from another country if the other country:

Question

Quizplus · Accepted Answer

Reducing barriers to import can lead to increased trade and economic growth. However, if a country has an "unfair" advantage over another country, such as through government subsidies or labor exploitation, then reducing barriers could negatively impact the domestic industry. Therefore, it is important for a country to only reduce barriers to import from countries that do not have an unfair competitive advantage over it. Option A is incorrect because reducing barriers may only worsen the competitive advantage of the other country. Option B is incorrect because reciprocal reduction may not always be possible or practical. Option D is incorrect because it does not provide any criteria for determining when to reduce barriers.

A Country Should Reduce Its Barriers to Import from Another