The trade protection that the United States steel industry receives has which of the following effects?

Question

Quizplus · Accepted Answer

Trade protection leads to higher prices for domestic producers since they do not have to compete with foreign producers. This raises the cost of steel for American consumers.

Answer: B 
 While trade protection may offer a short-term boost for American steel companies, it can lead to complacency and lower profits in the long term as they do not have to compete internationally.

Answer: C 
 This is not a direct effect of trade protection on the steel industry itself, but it is a possible indirect effect if higher steel prices lead to increased prices on products made with steel.

Answer: D 
 Trade protection is intended to prevent foreign steel products from competing with domestic producers, so it should not result in increased sales of foreign steel products in the United States.

The Trade Protection That the United States Steel Industry Receives