Domestic producers of goods who compete with cheaper imports benefit from protectionism in the short run.

Question

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Protectionism (such as tariffs or quotas) imposes extra costs on imported goods, making them less competitive and giving domestic producers an advantage. This can lead to increased sales and profits for domestic producers in the short run. However, protectionism can also lead to retaliation from trading partners, higher prices for consumers, and reduced efficiency and innovation in domestic industries in the long run.

Domestic Producers of Goods Who Compete with Cheaper Imports Benefit