Banning imports of certain products forestalls competition by forcing consumers to buy domestic products. Yet, preventing competition from imports discourages domestic producers from making the improvements necessary to bring products up to the highest possible standards. Therefore, there is no consumer advantage to banning imports of certain products.Which of the following, if true, is most damaging to the conclusion above?
A. Import bans can provide domestic producers the time they need to bring to market products they otherwise would not have the financial resources to develop.
B. Import bans on certain products often cause other countries, whose companies manufacture those products, to enact their own import bans.
C. A country's economic strength is more important to its survival than the availability of choice to its consumers.
D. When there is not a significant price difference, consumers tend to choose the products of domestic producers over those of foreign producers.
E. Bans and tariffs on imports can have unpredictable effects on currency exchange rates.
I will put OA later on after we have a few reasonable discussions on this question. My Choice: D.
Thanks!
A. Import bans can provide domestic producers the time they need to bring to market products they otherwise would not have the financial resources to develop.
B. Import bans on certain products often cause other countries, whose companies manufacture those products, to enact their own import bans.
C. A country's economic strength is more important to its survival than the availability of choice to its consumers.
D. When there is not a significant price difference, consumers tend to choose the products of domestic producers over those of foreign producers.
E. Bans and tariffs on imports can have unpredictable effects on currency exchange rates.
I will put OA later on after we have a few reasonable discussions on this question. My Choice: D.
Thanks!
