The unequal distribution of gains and losses from international trade produces political pressure to protect the losers.

Question

Quizplus · Accepted Answer

This statement is true. When some individuals or industries in a country benefit from international trade while others suffer losses, those who have been negatively affected may become politically active and pressure the government to take protective measures such as tariffs or subsidies to limit imports or support domestic producers. This phenomenon is sometimes referred to as the "politics of protectionism."

The Unequal Distribution of Gains and Losses from International Trade