Question

How have trade barriers harmed East Asian economies?

Answer 1

The correct answer is B.

Economies in East Asia have to thank a big proportion of their growth to international trade. They have specialized in certain manufacturing sectors and have become the leaders on those exports all over the world.

Certain countries have decided to limit the entrance of products from those Asian countries and their sectors of specialization by imposing trade barriers. The aim is that the cheaper Asian products cannot compete anymore in equal conditions with the more expensive national goods.

Trade barriers decrease the export figures for Asian countries and therefore block their growth pace.