Under what circumstances will a manufacturing firm facing foreign competition generally lobby for trade barriers rather than improve its production and delivery processes?
A) when the foreign goods are more expensive than the firm's
B) when no improvement is possible
C) when the foreign goods are of inferior quality
D) when lobbying is cheaper
E) when rent seeking is illegal

Question

Quizplus · Accepted Answer

Lobbying for trade barriers may be cheaper and easier for a manufacturing firm compared to making improvements to their production and delivery processes. This is especially true if the firm is unwilling or unable to make any significant changes to remain competitive, and lobbying for protectionist policies may be seen as a more viable option to maintain market share and profitability.

Under What Circumstances Will a Manufacturing Firm Facing Foreign Competition