ncorme Question 22 Your response Some politicians have argue

ncorme Question 22 Your response Some politicians have argued that to improve the U.S. economy we need to reduce imports, with the goal being that we only import products, such as rare fruits, that are not found in the United States. Will this policy improve the U.S. economy? O This policy will not benefit the U.S. economy because it does not help other countries that need to trade with the United States. O This policy will not benefit the U.S. economy because it does not promote our export industries. O This policy will not benefit the U.S. economy because it will result in higher prices and the United om States cannot specialize in the goods in which it has a comparative advantage. . This policy will benefit the U.S. economy because it will improve domestic employment

Solution

The correct answer is option C: This policy will not benefit the U.S. economy because it will result in higher prices as it will give monopoly power in the hands of producers in U.S. and they will not be subject to competition hence, increased prices of goods.Moreover, foreign trade is essential to be able to gain specialization in the products of comparative advantage in a country and restricting the trade will not let the U.S. economy utilise its full potential.

Option D is not correct because restricting trade to one\'s own country will not necessarily ensure increased employment and it might only benefit a few sections of the society.