Many American and European politicians argue that limiting international trade will improve GDP. A reason such protectionism is likely to fail is
A)such policies will reduce exports by as much or more than imports.
B)such policies fail to address the government budget deficit.
C)protectionism does not prevent immigration.
D)protectionism increases foreign direct investment and technological transfer.
E)such policies require all countries to coordinate their activities to be effective.

Question

Quizplus · Accepted Answer

Limiting international trade through protectionist policies may lead to a decrease in exports as other countries may retaliate with similar measures, resulting in a net loss for the economy. Additionally, protectionist policies may limit competition and innovation, leading to lower efficiency and long-term growth.

Many American and European Politicians Argue That Limiting International Trade