Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

The European Union sets a quota on the quantity of garments brought in from Brazil. What consequence is most likely to result?

  • Aa decrease in the price paid by EU consumers for Brazilian garments
  • Ba reduction in the inflation rate in the EU
  • Ca switch to producing lower-value garments by Brazilian textile firms
  • Dthe closure of Brazilian-owned textile factories

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