Which of the following statements about government trade policies is NOT typically true?

Show Answers

Economic recessions and downturns often lead to increased protectionist measures.Since domestic consumers outnumber producers, policymakers generally implement protectionist policies to please the majority of consumers.Trade policies usually become more liberal when domestic exporters are well-organized.Countries tend to support freer trade when imported goods are essential inputs for key industries.

Explanation

Economic downturns often encourage governments to adopt protectionist policies. Policymakers tend to favor free trade because domestic consumers, who are usually the majority, benefit from it. Organized exporting sectors typically push for more open trade policies. Additionally, nations whose critical industries rely on imported inputs usually support freer trade to maintain competitiveness.