A country that shuts out imports gives up the gains from specialisatio…

Question

A country that shuts out imports gives up the gains from specialisation, learning and scale. It also gives up its:

Accepted Answer

A. Comparative advantage

1. The economy stops doing what it does best.
2. The classic gain from trade is lost.
3. It is comparative advantage.
_Source: OpenStax Principles of Economics 3e, Chapter 34, Globalization and Protectionism._

Answer

Tax collections

Answer

Currency reserves

Answer

Interest earnings

A country that shuts out imports gives up the gains from specialisation, learning and scale. It also gives up its:

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