Exploring Free Trade and Protectionism: Pros and Cons

What is often a direct consequence of imposing tariffs on imported goods?

• Increase in export quotas

• Decrease in domestic product prices

• Increase in foreign goods prices

• Decrease in government revenue

What is the primary purpose of an import quota?

• To limit the quantity of goods entering a country

• To increase tax revenue

• To enhance the quality of domestic goods

• To promote international trade agreements

What is a common reason governments impose trade barriers?

• To protect domestic industries from foreign competition

• To increase their exports

• To reduce the quality of imported goods

• To encourage domestic innovation

How does protectionism benefit workers in industries threatened by foreign competition?

• By increasing their wages

• By promoting free trade agreements

• By reducing job security

• By potentially preserving their jobs

Why might a country protect an infant industry?

• To allow it time to become efficient

• To immediately compete on a global scale

• To increase its export quotas

• To reduce its operational costs

Why do most economists argue that free trade is better than protectionism?

• It leads to higher consumer prices

• It limits international cooperation

• It encourages market efficiency and competitiveness

• It requires more government intervention

What is a major benefit of free trade mentioned in the tutorial?

• Increased government control over industries

• Decreased cooperation between countries

• Higher quality and cheaper goods for consumers

• Increased tariffs on imported goods

How does free trade promote peace between countries?

• By imposing trade sanctions

• By increasing military alliances

• By reducing dependency on each other

• By fostering economic interdependence

What role does the World Trade Organization (WTO) play in global trade?

• Decreasing trade between countries

• Imposing tariffs on all member countries

• Promoting protectionist policies

• Resolving trade disputes

What was a significant political event that challenged the concept of free trade?

• The establishment of NAFTA

• Brexit and the UK leaving the EU

• The signing of the WTO agreement

• The formation of the European Union