According to material presented in Chapter 7, which focuses on the sectoral models of the economy, protection from imports can be justified if it:
A) shifts a country's comparative advantage to products that improve the terms of trade.
B) solicits retaliation from foreign governments.
C) favors traditional industries.
D) induces the government to favor the industries that innovated most in the past.

Question

Quizplus · Accepted Answer

According to sectoral models of the economy, protection from imports can be justified if it shifts a country's comparative advantage to products that improve the terms of trade. This means that protection can help a country specialize in products where it has a comparative advantage, thereby increasing its export competitiveness and improving its terms of trade.

According to Material Presented in Chapter 7, Which Focuses on the Sectoral