Figure 7-2

-The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?
A)an increase in world trade
B)a decrease in world trade
C)a limit on exports
D)an increase in exports
E)countertrade

Question

Figure 7-2
 
-The question mark in Figure 7-2 above leads to which of the following as a result of the imposition of tariffs and quotas?
A)an increase in world trade 
B)a decrease in world trade 
C)a limit on exports 
D)an increase in exports 
E)countertrade

Quizplus · Accepted Answer

Protectionism hinders world trade through tariff and quota policies of individual countries.Tariffs increase prices and quotas limit supply,which ultimately leads to a decrease in world trade.

Figure 7-2 -The Question Mark in Figure 7-2 Above Leads to Which