Judging by the Ongoing Changes in Tariff Rates in Major

question 15

Multiple Choice

Judging by the ongoing changes in tariff rates in major trading countries, the world has been experiencing a great

• A) trade liberalization.
• B) surge of protectionism.
• C) lack of progress in the trade-policy area.
• D) move towards regional integration.
• E) shift from export subsidies to specific tariffs.

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Definitions:

Equilibrium

A condition where the supply and demand in the market are in equilibrium, leading to stable pricing.

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Free Trade

An economic policy that allows for the unrestricted import and export of goods and services between countries without tariffs or quotas.

Production Costs

The expenses involved in manufacturing a product, including raw materials, labor, and overhead.