Question

Protectionist measures designed to limit free trade and protect domestic jobs

Question 7 options:

never cause the loss of efficient production that all countries receive.


work only if other countries do not retaliate with their own trade barriers.


never result in the loss of access to less costly products and raw materials from other nations.


work even when other countries retaliate with their own trade barriers.

Answer 1

work only if other countries do not retaliate with their own trade barriers.

Step-by-step explanation:

Answer 2

work only if other countries do not retaliate with their own trade barriers.

Step-by-step explanation:

Governments use import tariffs as a tool to impose protectionist policies. A tariff is a tax levied on all imports. The purpose is to make imports expensive in the domestic markets.

Governments may also use import quotas. Import quotas restrict the volume of imports allowed in the country.

One challenge in the application of tariffs and import quotas is retaliatory tariffs. Retaliatory tariffs are trade barriers imposed on a country by its trading partners as a response to it charging excessive duties.

Retaliatory tariffs make exports of a protectionist country uncompetitive.