Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?
A) The trade restrictions make textile consumers better off.
B) The trade restrictions make workers in poor countries better off.
C) The trade restrictions benefit an organized visible special interest in rich countries.
D) Rich countries have a strong need for the revenue from these trade restrictions.
C
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Which of the following statements is true?
A. Current account balance = -(capital account balance). B. A country's balance on current account equals its balance on capital account. C. If the market for a nation's currency is in equilibrium, a capital account surplus necessarily means a current account surplus. D. Capital accounts and current accounts balances are determined by governments.
What is the relevance of the marginal productivity principle in explaining the use of inputs in production?