What is the result when domestic restrictions, such as tariffs and quotas, are imposed?

Question

Quizplus · Accepted Answer

When domestic restrictions such as tariffs and quotas are imposed, they benefit domestic producers by limiting foreign competition and increasing the demand for domestic goods. This can lead to higher profits for domestic producers and potentially increase employment in the domestic market. However, these benefits to domestic producers may come at a cost to domestic consumers who may face higher prices for goods as a result of the restricted supply. Moreover, the use of domestic restrictions can also lead to trade tensions with other countries and potentially reduce the volume of world trade.

What Is the Result When Domestic Restrictions, Such as Tariffs