If, in the Long Run, International Trade Improves the Standards

question 78

Multiple Choice

If, in the long run, international trade improves the standards of living in participating countries, why might some countries want to place trade barriers, such as extra taxes, on imported products?

• A) Imported products compete with domestic products and thus put pressure on local business.
• B) Imported products are usually not as good quality as domestically made products.
• C) Generating government revenue is often more economically valuable than free trade.
• D) This is necessary to keep a country's currency strong.
• E) International trade tends to lead to political tension.

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Definitions:

Financial Data

Information related to monetary transactions, financial status, and performance of a company, individual, or asset.

Cumulative Net Profit

The total sum of all profits and losses over a specific period, after accounting for all expenses and revenues.

Financial Data

Information about monetary transactions, assets, liabilities, revenues, and expenses of an individual or organization.

Market Size

Market Size refers to the total volume or value of a particular market, measured through sales or potential customer interest within a defined period.