A Problem That Can Arise in Using Trade Protectionism to Develop

question 7

Multiple Choice

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

• A)it is difficult to identify industries that have a high probability of reaching competitiveness
• B)assistance should be given only if entry barriers to new firms are very low
• C)the protecting countries lose too much revenue from import duties
• D)a short product life cycle makes the industry quickly noncompetitive

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Definitions:

Fee Simple

The most complete ownership in property available, giving the holder full control over the land and the buildings upon it.

Riparian Water Rights

Legal entitlements related to the ownership of land alongside rivers and streams, governing the use of water resources.

All Mining Rights

The comprehensive legal permissions granted to an individual or organization to explore for and extract minerals from a specific area.

Exclusive Use Areas

Sections of property designated for the private use of an individual or group, limiting access to others.