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Asked by Franchezka Mendoza on May 19, 2024

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Trade protection in most instances transfers wealth from consumers to domestic producers and government.

Trade Protection

Measures implemented by countries to protect their domestic industries from foreign competition, such as tariffs and quotas.

Wealth Transfer

The movement of assets from one party to another, often due to inheritance, gifts, or legal mechanisms like trusts and estates.

Domestic Producers

Refers to individuals or companies that manufacture goods or offer services within their own country.

  • Assess the consequences of tariffs, quotas, and other barriers to trade on national and international markets.
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Mohammad SaramMay 22, 2024
Final Answer :
True
Explanation :
Trade protection (such as tariffs or quotas) may increase prices for consumers by reducing competition and artificially boosting profits for domestic producers. The additional revenue gained from these measures often goes towards the government instead of directly benefiting consumers. Thus, trade protection can transfer wealth from consumers to domestic producers and government.

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