Question

countries like argentina and australia protect agriculture less heavily than other agricultural producers because question 1select one: a. they are trying to help other countries. b. they do not have significant agricultural sectors. c. they have a large comparative advantage in production. d. it is illegal under wto rules.

Answer 1

Countries like Argentina and Australia protect agriculture less because they have a large comparative advantage in production, making them competitive in the global market. Their significant agricultural sectors benefit from free trade as per WTO agreements.

Step-by-step explanation:

The reason countries like Argentina and Australia protect agriculture less heavily than other agricultural producers is because they have a large comparative advantage in production. These countries are major exporters in agricultural commodities, like beef in the case of Argentina, and therefore they benefit more from free trade. They operate efficiently and can compete effectively on the international market.

Their agricultural sectors are significant, and the drive for free trade aligns with international agreements like those set by the World Trade Organization (WTO), which aim to reduce protectionism. While protectionist policies can help certain industries within a country, international trade agreements provide a platform for countries to limit protectionist measures that are often pushed by specific interest groups, hence promoting a more free trade environment overall.