The International Economy And Globalization
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- The International Economy And Globalizationeconomics-mcqs › the-international-economy-and-globalization
- Published
- 27 May 2019
- Last updated
- 28 May 2026
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Which sector is likely to experience temporary job losses following a rapid transition from import tariffs to free trade?
Multiple choice question for The International Economy And Globalization. Select an option, then review the explanation below.
Explanation
When import tariffs are suddenly removed, industries that previously competed against imported products face increased foreign competition. This can lead to short-term unemployment in these import-competing sectors as they adjust to the new market conditions.
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Practice related questions from the same subject.
- 1.In which type of goods do Less Developed Countries (LDCs) typically hold a comparative advantage?
- 2.Why did output decline drastically in the economies undergoing transition?
- 3.When products are sold abroad at prices below the marginal cost of production and the marginal benefit to local consumers, which policy is most likely supporting this situation?
- 4.How do tariffs affect the production levels of domestic companies and the consumption habits of consumers?
- 5.The equilibrium exchange rate adjusts to neutralize disparities in which of the following international economic factors?