Average Tariff Levels on Manufactured Goods in International Trade Have

question 4

Multiple Choice

Average tariff levels on manufactured goods in international trade have declined significantly since the 1970s. This may not always be a good thing. Why?

• A) it makes infant industries subject to devastating foreign competition
• B) it encourages more hidden barriers to trade
• C) it encourages balking at further reductions
• D) it encourages dumping of goods at below cost prices

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