Why Should Managers Have an Understanding of Trade Protectionism

question 44

Multiple Choice

Why should managers have an understanding of trade protectionism?

• A)Trade protectionism targets factor endowments, thus affecting the best country to locate production.
• B)Trade protectionism affects a company's ability to sell abroad and ability to compete at home.
• C)Trade protectionism affects the number of people permitted to practice a specific profession.
• D)Trade protectionism prevents companies' enactment of merger and acquisition agreements.

---

Definitions:

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices.

Aggregate Supply Curve

A graphical representation in economics that shows the total quantity of goods and services that producers are willing to supply at various price levels.