Suppose protectionist measures are passed in attempts to save jobs in the automobile industry. The most likely result of this action will be to:

Question

Quizplus · Accepted Answer

Protectionist measures, such as tariffs or quotas on imported vehicles, can indeed increase employment in the domestic automobile industry by making foreign cars more expensive and thus less competitive. However, these measures can lead to retaliation by other countries, increase the cost of imported components for other industries, and reduce the purchasing power of consumers, potentially leading to job losses in other sectors of the economy.

Suppose Protectionist Measures Are Passed in Attempts to Save Jobs