Protection can give new industries a chance to get a foothold so that they can later compete in the international market after they become more productive through learning by doing.

Question

Quizplus · Accepted Answer

Protectionism, such as imposing tariffs or quotas on imported goods, can protect domestic industries from foreign competition and give them time to develop and improve their productivity. This can lead to the creation of new industries and the expansion of existing ones, which can later compete in the international market after they have gained knowledge and experience through learning by doing.

Protection Can Give New Industries a Chance to Get a Foothold