Countries that restrict foreign trade are likely to
A)forgo the additional surplus that trade allows,but will probably enjoy economies of scale.
B)forgo the additional surplus that trade allows,but will be compensated by a higher rate of technological change.
C)forgo the additional surplus that trade allows,but will have a lower rate of unemployment.
D)have more firms with domestic market power.

Question

Quizplus · Accepted Answer

Restricting foreign trade limits competition from abroad, which can lead to domestic firms having more market power as they face less competition.

Countries That Restrict Foreign Trade Are Likely to