When a country imposes trade restrictions,the domestic producers who compete with imports may lose in the long run if protection stifles innovation and leaves the industry vulnerable.

Question

Quizplus · Accepted Answer

Trade restrictions can provide temporary benefits to domestic producers by limiting competition, but in the long run, they may become reliant on protection rather than innovation and may not be able to compete in the global market. This can ultimately harm the industry and leave it vulnerable to shifts in the market.

When a Country Imposes Trade Restrictions,the Domestic Producers Who Compete