If Ecuador is considered to be a "small" country,a tariff will ______ increase its national welfare.
A) never
B) always
C) sometimes

Question

Quizplus · Accepted Answer

According to the theory of international trade, small countries always benefit from free trade as their domestic industries cannot compete with large foreign industries. Imposing tariffs will only lead to an increase in prices for consumers and no increase in national welfare for the small country.

If Ecuador Is Considered to Be a "Small" Country,a Tariff