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The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why,

Chako

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The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why,

The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?
A) Imports are only restricted when foreign-made goods do not meet domestic standards of quality.
B) Restrictions on imports are intended to benefit domestic consumers.
C) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.
D) Import restrictions are the result of trade wars between hostile countries.
E) Trade can have substantial effects on a country's distribution of income.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 203 times

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Chako Author

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8 years ago

Good answer, thank you

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machukian

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7 years ago

Thanks for the feedback, I'm sure others will appreciate it too

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