Question

Which of the following are arguments that are given to support trade barriers?

A. To increase exports.
B. Foreign firms can pay lower wages.
C. To increase employment domestically.
D. To increase employment abroad.
E. To prevent dumping.

Answer 1

E To prevent dumping

Step-by-step explanation:

There are several arguments that are given to support trade barriers; one of which is to prevent dumping. A country would place embargo on imports with respect to some of the goods that are produced in her country. This is to enable and encourage local production of such goods. Where a country permits importation of goods that are produced locally, such action could being down the efforts of local production ; hence local industries might not thrive in terms of production.

Also, placing embargo on the importation of goods that are produced locally in a country would take away the possibility of making the country for dumping ground in terms of goods that are not up to standard, produced in a foreign country and same would have been imported.