Question

Countries like argentina and australia protect agriculture less heavily than other agricultural producers because:____.

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

Argentina and Australia protect agriculture less because they have a large comparative advantage, allowing them to benefit from free trade and compete effectively globally. option b.

Step-by-step explanation:

Countries like Argentina and Australia protect agriculture less heavily than other agricultural producers because they have a large comparative advantage in production. These countries are efficient agricultural producers with significant agricultural sectors that contribute to their economies. Argentina, traditionally a major exporter of beef, and Australia, have both established strong international markets for their agricultural products. Consequently, maintaining low trade barriers and encouraging open markets align with their interests, as they can compete effectively on the global stage.

It's not about helping other countries, nor is it because they lack significant agricultural sectors. Moreover, while the World Trade Organization (WTO) does set rules about trade policies, it doesn't make it illegal to protect agriculture; instead, such measures are often negotiated within the WTO framework. Therefore, these countries do not heavily protect their agriculture sectors because they benefit from free trade given their competitive edge.