The statement about trade policy that is true is:
a. A restrictive import quota increases a country's net exports.
Here's the reasoning:
- A restrictive import quota limits the quantity of goods that can be imported into a country, which typically reduces imports.
- When imports decrease while exports remain the same or increase, net exports (exports minus imports) will increase.
Therefore, a restrictive import quota can lead to an increase in a country's net exports.