Which Statement Is True of Tariff Reductions

Multiple Choice

Which statement is true of tariff reductions?

A) Reciprocal tariff liberalization has quickly become widespread to support free trade.
B) Tariff reductions primarily benefit import-competing industries within a nation.
C) Tariff reductions lead to increased foreign competition that undermines the welfare of a nation.
D) Tariff reductions can increase the overall welfare of a nation when affected industries are compensated for their losses.