The protection of infant industries by a nation's government can cause domestic companies to become complacent toward innovation.

Question

Quizplus · Accepted Answer

When a government protects infant industries by limiting foreign competition, domestic companies may not feel the pressure to innovate and improve their products and services in order to compete in the global market. This can lead to a complacent attitude toward innovation, potentially hindering the long-term growth and competitiveness of the domestic industry.

The Protection of Infant Industries by a Nation's Government Can