Quotas will mean lower prices for consumers c. The U.S. steel industry, even though it enjoys a comparative advantage, cannot survive without protection from imports. None of the above arguments provides a legitimate basis for limiting steel imports. Brazil has a comparative advantage in the production of shoes. Brazil exports shoes to Argentina if there is free trade.
Brazil has an absolute advantage in the production of shoes.
All of the above are true. Answer the next three questions using the following diagram, which shows the supply by U.S. producers and the demand by U.S. consumers for chocolates. U.S. producers will not sell any chocolates. U.S. consumption rises by 8 million pounds. Protectionism raises a country's average standard of living.