Protecting infant industries can cause domestic companies to become complacent toward innovation.

Name: Protecting infant industries can cause domestic companies to become complacent toward innovation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When infant industries are protected, they may not face competition from foreign firms and may become complacent and not invest as much in research and development or improving their products. This can stifle innovation and ultimately harm the industry in the long run.

Protecting Infant Industries Can Cause Domestic Companies to Become Complacent