Question

What is a disadvantage of trade protectionism strategies?

• A. Firms will never be as efficient as they would be when exposed to competition
• B. Firms tend to get used to and rely on them
• C. Consumers are unable to access a variety of goods offered form other countries.
• D. All of the above

Answer 1

Answer: (D)

All of the above

Disadvantages of Protectionism

1:Higher Prices. Whether tariffs, quotas, exchange rate controls, or regulations are used, they can all affect the final price of a product.

2:Less Choice. By restricting international competition, there are fewer goods coming into the country.

3:Firms will never be as efficient as they would be when exposed to competition