Protectionism arises because
A)people misunderstand the benefits of free trade
B)trade generally harms some groups in society
C)the costs of free trade outweigh the benefits for all groups in society
D)the costs of trade for both exporting and importing nations outweigh the benefits
E)of a lack of comparative advantage

Question

Quizplus · Accepted Answer

Protectionism arises because some groups in society, such as domestic producers, may be harmed by the competition from foreign producers. These groups may lobby the government to impose tariffs, quotas, or other trade barriers to limit or eliminate foreign competition and protect their own industries. This is often seen as a way to protect jobs and the domestic economy, but it can lead to higher prices for consumers, reduced competitiveness, and lost export opportunities.

Protectionism Arises Because