All of the following are potential problems of using export controls EXCEPT which one?
A) There is an incentive for other countries to develop production of their own.
B) Domestic producers may have less incentive to increase output.
C) Prices go up in the country imposing the controls.
D) There is more incentive for smuggling.

Question

Quizplus · Accepted Answer

This is not a potential problem of using export controls. Export controls may actually lead to domestic producers having more incentive to increase output, as they have less foreign competition. The other potential problems listed are valid concerns of using export controls.

All of the Following Are Potential Problems of Using Export