The Argument That Foreign Trade Should Be Restricted to Protect

question 86

Multiple Choice

The argument that foreign trade should be restricted to protect domestic employment and output is based on the idea that:

• A) consumers are willing to pay higher prices for domestic goods.
• B) producers will not exploit reduced foreign competition by charging higher prices.
• C) foreign companies are more costly to deal with than domestic companies.
• D) sales of imports come at the expense of domestic goods and jobs.

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Definitions:

Held-to-maturity Securities

Debt securities that a company intends and is able to hold until they mature.

Equity Securities

Equity Securities are financial assets representing ownership interest in a company, such as stocks, which provide voting rights and potential dividends.

Multinational Corporations

Multinational corporations are large companies that operate commercially in multiple countries, expanding their manufacturing, sales, and services beyond their original borders.

Foreign Exchange Rates

The price of one country's currency in terms of another country's currency.