Protectionism leads to ________.

Question

Quizplus · Accepted Answer

Protectionism involves imposing trade barriers on foreign goods, such as tariffs or import quotas, in order to protect domestic industries from foreign competition. This leads to a reduction in the competition faced by domestic firms, as foreign firms are restricted from entering the market or face higher costs to do so. Therefore, domestic firms may become less efficient and face less pressure to innovate and improve their products or services, which can ultimately harm consumers through higher prices and reduced quality.

Protectionism Leads to ________