Over the long run,protecting a domestic industry using a high tariff is likely to ________ new products and production methods,thus making it ________ to compete in the global marketplace.

Question

Quizplus · Accepted Answer

A high tariff may provide short-term protection to a domestic industry, but in the long run, it discourages the industry from developing new products and production methods as it becomes less incentivized to improve efficiency and competitiveness. As a result, the industry becomes less able to compete in the global marketplace.

Over the Long Run,protecting a Domestic Industry Using a High