Governments support domestic industries by ________.
A)incentivize dumping
B)increase the costs of production of domestic industries
C)alienate domestic industries
D)adopting procurement policies that restrict purchases to home-country suppliers

Question

Quizplus · Accepted Answer

Governments can support domestic industries by adopting procurement policies that restrict purchases to home-country suppliers. This policy ensures that domestic industries get a certain level of demand and can sustain their operations, leading to the growth of the local economy. Incentivizing dumping or increasing the costs of production of domestic industries can lead to unfair competition and may harm the industry in the long run. Alienating domestic industries is also not a desirable outcome as it may lead to the loss of employment and reduced economic growth.

Governments Support Domestic Industries by ________