Question

Identify whether each scenario describes a drawback or an advantage of trade regulation.

benefit of
trade regulations
drawback of
trade regulations
Melanie owns a juice and soda company. Her
country imposes tariffs on imported soft drinks.
Melanie and her employees feel secure because
they aren't threatened by heavy competition from
foreign beverages.
Chad owns a shoe factory. For 15 years, his
country has blocked virtually all foreign shoes
from entering the domestic market. Chad does
not feel the need to innovate and create new
styles of shoes to offer variety to consumers.
Ravi has a unique vision for the future of
smartphones. He believes his design can propel
his nation to the top tier of smartphone exporters.
But he holds off on starting a manufacturing
company because he thinks foreign competition

Answer 1

Advantage

Drawback

Advantage

Drawback

Step-by-step explanation:

Trade regulations may vary according to the policy.

1. Melaine had an advantage in this regulation. This brought protection against heavy competitors.

2. Chad has been using this Protectionism to keep on selling obsolete shoes. A huge drawback for his customers.

3. Ravi realized a great opportunity with this market opening a great advantage. He can sell it overseas.

4. Sharon has suffered a drawback in buying a new car. Either She will pay much more for the same car or She'll buy a simpler one.