Identify at least two risks that have been associated with government nurturing young industries
A)Such protection can discourage domestic industry from increasing competition and engaging in innovation
B)there is a question as to whether consumers are better or worse off from such practices as it comes at the expense of blocking access to cheaper foreign goods or services
C)a & b
D)none of the above

Question

Quizplus · Accepted Answer

Option A highlights the risk of protectionism, which can lead to complacency and a lack of innovation among domestic industries. Option B raises the issue of consumer harm, as high tariffs or other barriers to foreign competition can result in higher prices for goods and services. Both options illustrate potential risks associated with government nurturing of young industries. Therefore, the best answer is C.

Identify at Least Two Risks That Have Been Associated with Government