MCQ Detailed View

Trade barriers are government-imposed restrictions on international trade, such as tariffs, quotas, and subsidies. While many trade barriers are designed to protect domestic industries, some can also provide benefits to consumers in specific scenarios.

A trade barrier that protects declining industries can indirectly benefit consumers by ensuring a stable supply of essential goods. For example, if a country imposes temporary tariffs or support measures to save a key industry, it can maintain local production, prevent shortages, and help keep prices stable for consumers.

Other trade barriers serve different purposes:

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  Shield from low-wage countries → Protects domestic jobs but often leads to higher prices for consumers.

  
  


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  Stop dumping → Prevents foreign companies from selling goods below cost, protecting local producers, but may reduce cheaper options for consumers.

  
  


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  Support infant industries → Helps new domestic industries grow, but initially may increase costs for consumers due to lack of competition.

  
  

Key points to understand:

1. 
   

   Consumers benefit when trade barriers ensure availability and stability of products they need.

   
   


2. 
   

   Barriers designed purely for protection of domestic industries can indirectly improve product quality and reliability, even if prices are slightly higher.

   
   


3. 
   

   Understanding trade barriers is essential in economics, international trade, and policy-making, as these measures balance consumer interests and national economic goals.

   
   

In summary, the correct answer is Protect declining industries, because it can benefit consumers by stabilizing supply and ensuring access to essential goods.