Why should managers have an understanding of trade protectionism?
A)Trade protectionism targets factor endowments, thus affecting the best country to locate production.
B)Trade protectionism affects a company's ability to sell abroad and ability to compete at home.
C)Trade protectionism affects the number of people permitted to practice a specific profession.
D)Trade protectionism prevents companies' enactment of merger and acquisition agreements.

Question

Quizplus · Accepted Answer

Trade protectionism can affect a company's ability to sell abroad and ability to compete at home by imposing tariffs or quotas on imports, thus making them more expensive and less competitive. Managers need to understand these restrictions to develop appropriate strategies for international trade and competition.

Why Should Managers Have an Understanding of Trade Protectionism