Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

If the government of country X decided to use voluntary export restraint in trade with country Y, which argument in favour of protection would be the most relevant?

  • AVoluntary export restraint would achieve an immediate correction for X’s balance of trade deficit.
  • BVoluntary export restraint would cause the level of GDP to increase in country X.
  • CVoluntary export restraint would help to negotiate improved trading conditions between X and Y.
  • DVoluntary export restraint would help to reduce the level of unemployment in country X.

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