Question

Which policy reflects the notion that if society enjoys gains that are due to increased efficiency stemming from trade liberalization, some sort of compensation should be provided to those who are temporarily hurt by import competition? a. trade adjustment assistance b. domestic subsidies c. countervailing duties d. most-favored-nation standard

Answer 1

Answer: a. Trade adjustment assistance

Explanation: Trade adjustment assistance provides cash assistance, education, and training benefits, health care subsides, and wage subsidies to workers displaced by imports or plant relocations abroad.