- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 2. International Trade Restrictions and Agreements
CFA Practice Question
Which of the following statements is false?
A. Economists generally oppose trade restrictions because they increase specialization.
B. Economists generally oppose trade restrictions because they reduce efficiency and specialization.
C. Economists generally oppose trade restrictions because they reduce competition.
Explanation: Trade restrictions reduce specialization because they reduce the level of imports, forcing a country to produce a wider variety of goods.
User Contributed Comments 1
User | Comment |
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chuong | Remember the question asking false statement: A is false (trade promote specialization at relative competitive advantage. |