If, in the long run, international trade improves the standard of living in participating countries, why might some countries want to place trade barriers, such as tariffs, on imported products?
A) Imported products compete with domestic products and thus put pressure on local business.
B) Imported products are usually not as good quality as domestically made products.
C) Generating government revenue is often more economically valuable than free trade.
D) This is necessary to keep a country's currency strong.
E) International trade tends to lead to political tension.

Question

Quizplus · Accepted Answer

Some countries may fear that imported products will compete with domestic products, leading to layoffs or bankruptcy for local businesses. To protect domestic businesses, they may implement trade barriers such as tariffs or quotas.

If, in the Long Run, International Trade Improves the Standard