Strategic trade protectionism makes:

Question

Quizplus · Accepted Answer

Strategic trade protectionism, also known as strategic trade policy, refers to government policies that aim to improve the competitiveness of domestic industries in international markets. These policies typically involve protecting domestic industries through tariffs, subsidies, and other forms of government intervention. By doing so, the domestic country can increase its exports and decrease its imports, improving its trade balance and domestic welfare. However, it also comes at the expense of foreign countries who may experience a decrease in exports and increase in imports, leading to a decrease in their overall welfare. Thus, choice D is the best answer as it captures the essence of strategic trade protectionism, which tends to benefit the domestic country while imposing costs on foreign countries.

Strategic Trade Protectionism Makes