The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions.

Question

Quizplus · Accepted Answer

The proposal to impose trade restrictions is a form of inward-oriented policy, which aims to protect domestic industries from foreign competition. However, most economists believe that such policies have adverse effects on economic growth. By limiting competition, domestic firms may become complacent and less efficient, while consumers may face higher prices and lower quality goods. Additionally, trade restrictions can lead to retaliatory measures by other countries, which could further harm the country's economy.

The President of a Developing Country Proposes That His Country