Liberalised Trade Policies to Promote Globalisation
Which of the ...
Question
Which of the following challenges does a domestic producer face in case of unrestricted foreign trade?
A
Shortage of capital
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B
Restriction in business expansion
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C
Competition from imports
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D
More legal scrutiny
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Solution
The correct option is C Competition from imports Unrestricted foreign trade provides market access to foreign companies to sell their goods and services. In this case, the domestic producers face tough competition from imported goods.