Recent research on the cost of protectionism indicates that international trade barriers _____

Question

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Recent research shows that protectionist policies can slow down the introduction of new goods and technologies. When countries protect their domestic industries with trade barriers, it reduces competition and can discourage innovation, resulting in slower advancements in technology.

Answer: E  
 When trade barriers are implemented, the opportunity cost of production increases because domestic producers have to use more of their resources to produce goods that could have been obtained at a lower cost from foreign producers if trade barriers were not in place. As a result, the cost of production goes up, and this increased expense is passed on to consumers, leading to higher prices.

Recent Research on the Cost of Protectionism Indicates That International