Reduced Protection - Impact on QOL

Question 1

Firms: Short-Term

Answer 1

Import-competing industries go out of business

Lower tariffs provide lower input costs for firms

Question 2

Firms: Long-Term

Answer 2

Efficient firms restructure operations to compete on a global stage, potential for greater profits

Question 3

Individuals: Short-Term

Answer 3

Structural unemployment increases as inefficient firms close

Consumers gain access to wide variety of goods at lower prices

Question 4

Individuals: Long-Term

Answer 4

Job opportunities increase in internationally competitive sectors

Question 5

Governments: Short-Term

Answer 5

Cutting tariffs will reduce government revenue

Government spending on structural adjustment programs may increase

Question 6

Governments: Long-Term

Answer 6

Sustainable economic growth should raise revenue