ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Domestic Consumers of clothing
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Domestic producers of clothing
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Foreign Producers of clothing
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department stores who sell clothing
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Detailed explanation-1: -International trade increases the number of goods that domestic consumers can choose from, decreases the cost of those goods through increased competition, and allows domestic industries to ship their products abroad.
Detailed explanation-2: -Obviously, a tariff also generates revenues for the government of the importing country (revenue function). Tariffs therefore benefit the government and producers of the importing country in the form of tax revenues and producer surpluses at the expense of its consumers in the form of higher prices.
Detailed explanation-3: -Can countries benefit from trade even if they do not export much? Some countries realize economic growth not just from the export of their own products, but from providing logistics services to cargo from and to other countries. For example, Singapore, The Netherlands, and Belgium.
Detailed explanation-4: -Countries sometimes impose quotas on specific products to reduce imports and increase domestic production. In theory, quotas boost domestic production by restricting foreign competition. Government programs that implement quotas are often referred to as protectionism policies.