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Burka [1]
3 years ago
15

How do economic barriers to trade impact countries that enact them? Select all that apply.

History
2 answers:
Schach [20]3 years ago
7 0

Answer:

A by causing real median household incomes to decline

C by limiting consumer choice

Explanation:

Negative effects of trade barriers (protectionism) policies include the following:

- weakening competition in the domestic market, and, consequently, incentives to improve production decsrease;

- the welfare of the population is decreasing due the rise in price of imported goods and the relative high cost of domestic goods, the deterioration of the quality of domestic goods, and the restriction of the freedom of choice of consumers;

- the country will suffer large losses due to the non-use of the absolute and relative advantages of the international division of labor and exchange.

This is confirmed, in particular, by the fact that after the Second World War, the gradual removal of trade barriers, such as tariffs and quotas, stimulated growth and increased the level of welfare wherever this happened, partly due to the expansion of the choice of goods for the population at lower prices. More importantly, trade also had a powerful beneficial effect on productivity, that is, on the efficient use of world resources for the production of economic goods.

miv72 [106K]3 years ago
7 0

Answer:

By causing prices of domestic goods to rise.

By limiting consumer choice

Just took the quiz!!!

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