Industries which receive government protection from trade pressures are likely to exhibit all of the following except

Question

Quizplus · Accepted Answer

Industries that receive government protection from trade pressures often do not have a comparative advantage. This is because protectionist measures, such as tariffs and quotas, are typically used to shield domestic industries that would otherwise struggle to compete against more efficient or cost-effective foreign competitors. High levels of employment, low productivity, a high proportion of unskilled workers, and monopoly power can all be characteristics of protected industries, as these sectors may not face the competitive pressures that drive efficiency and innovation.

Industries Which Receive Government Protection from Trade Pressures Are Likely