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WAEC Economics 2012 Question 49

Question 49

International Trade

One of the reasons why government may erect a trade barrier is to

  1. A.control foreign currencies.
  2. B.protect infant industries.
  3. C.promote importation.
  4. D.diversify the economy.
Show the answer and explanation

Answer: B (protect infant industries.)

Explanation

Tariffs and quotas shield new local industries from foreign competition.