Chapter 44, Problem 2MCQ

To determine

The correct option in defining the term protectionism.

Answer to Problem 2MCQ

Option c is correct.

Explanation of Solution

Explanation for the correct option:

c.

Protectionism refers to the protection of domestic industries by regulating international traders through trade restrictions, import quotas, etc. It affects the global economy. Therefore, option c is correct.

Explanation for incorrect options:

a.

To protect domestic resources no such trade restrictions, policies, etc. are imposed. Therefore, option a is the incorrect answer.

c.

Consumption level is not restricted or comes under protectionism. Therefore, option c is incorrect.

d.

There are no restrictions on the export level as countries promote their domestic exports. Therefore, option d is incorrect.

e.

Since all of the options are not correct. Therefore, option e is incorrect.

Economics Concept Introduction

International trade: International trade is an exchange of goods and services across nations. This is due to globalization and comparative advantage. It means goods are produced in one country and are sold in some other country.