Which of the following would be an appropriate reason for a country to eliminate trade restrictions?
A) To protect its domestic industry
B) To retaliate against countries who have engaged in unfair trade practices
C) To pressurize other countries to change their policies and practices
D) To increase domestic jobs in industries with a comparative advantage versus other countries

Question

Quizplus · Accepted Answer

Eliminating trade restrictions can lead to increased trade and competitiveness, which can in turn lead to opportunities for domestic industries with a comparative advantage. This can lead to the creation of more jobs and economic growth. Protecting domestic industry (A) or retaliating against unfair trade practices (B) may be valid reasons to impose trade restrictions initially, but eliminating them would not serve these purposes. Pressurizing other countries (C) may not be a productive reason for eliminating trade restrictions as it could harm diplomatic relations and lead to retaliation.

Which of the Following Would Be an Appropriate Reason for a Country