The main disadvantage of protection from import competition is the added cost of continuing to produce a good or service that could be supplied more efficiently by an international supplier.

Question

Quizplus · Accepted Answer

Protection from import competition often leads to higher production costs and reduced efficiency, as domestic producers are shielded from international competition and do not have to innovate or improve their operations to compete in the global market. These higher costs are ultimately passed on to consumers in the form of higher prices, reducing their purchasing power and overall welfare.

The Main Disadvantage of Protection from Import Competition Is the Added