A common argument in favor of restricting international trade in good x is based on the premise that (A) international trade reduces total surplus in countries that export good x. (B) international trade reduces total surplus in countries that import good x. (C) international trade is desirable only when countries with different domestic supplies of natural resources play by different rules when trading with one another. (D) trade restrictions can be useful when one country bargains with its trading partners.

Question

Ronnie Ortiz

Business

15 June, 10:12

A common argument in favor of restricting international trade in good x is based on the premise that (A) international trade reduces total surplus in countries that export good x. (B) international trade reduces total surplus in countries that import good x. (C) international trade is desirable only when countries with different domestic supplies of natural resources play by different rules when trading with one another. (D) trade restrictions can be useful when one country bargains with its trading partners.

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Answers (1)

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Malakai Owens · Answer 1

Option D is correct

Explanation:

It is useful because it provides a platform for both parties to find a common ground favourable to both parties when trading in goods x be it resources for production of goods X or demand of final product of good x.