CFA Level I · CFA Level I Exam · Introduction to Geopolitics
A government replaces a long-standing multilateral trade agreement with tariffs and quotas aimed at protecting domestic industries. This action is most likely a move toward:
Swapping a multilateral trade agreement for tariffs and quotas that protect domestic industries is a nationalist, protectionist move. It reduces cross-border integration and rules-based cooperation, so it moves away from globalization rather than toward it.
- Agreater globalization
- Ba cooperative, rules-based order
- Ca more nationalist and protectionist stanceCorrect
Explanation
Replacing a multilateral agreement with tariffs and quotas to shield domestic industry is a protectionist, nationalist policy. It reduces cross-border integration and rules-based cooperation, so the other two options are wrong.
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