Question

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

consumers are willing to pay higher prices for domestic goods.

producers will not exploit reduced foreign competition by charging higher prices.

foreign companies are more costly to deal with than domestic companies.

sales of imports come at the expense of domestic goods and jobs.

Answer 1

Option D.

• The argument that foreign trade should be restricted to protect domestic employment and output is based on the Idea that sales of imports come at the expense of domestic goods and jobs.
• Trade restrictions such as tariffs, taxes are imposed on the foreign Trades.
• This is to protect the domestic producers from the ompaci of foreign trade.
• These trade barriers make the goods and services very costly for the consumers to consume and hence they prefer more domestic goods and services.
• This makes the domestic producer's better off.