Which of the following policies would not improve the terms of trade from the point of view of import-competing industries in the United States?
A) Freer trade.
B) "Buy American" campaigns.
C) Placing tariffs on imports of foreign goods.
D) Restricting imports of foreign goods.

Question

Quizplus · Accepted Answer

Import-competing industries benefit from protectionism measures such as tariffs and import restrictions, which make foreign goods more expensive and less competitive compared to domestic counterparts. Freer trade, on the other hand, would allow foreign competitors to enter the market more easily and potentially drive down prices, reducing the profitability and competitiveness of import-competing industries. Therefore, freer trade would not improve the terms of trade from the point of view of import-competing industries in the United States.

Which of the Following Policies Would Not Improve the Terms