The use of tariffs and quotas for trade protection results in:

Question

Quizplus · Accepted Answer

Tariffs and quotas create barriers to free trade, which can reduce overall efficiency in the economy. This can result in higher prices for consumers, less competition and innovation among domestic producers, and less incentive for domestic producers to improve their efficiency. Additionally, tariffs and quotas can lead to retaliation from other countries and damage diplomatic relations, which could hurt trade and investment opportunities in the long run.

The Use of Tariffs and Quotas for Trade Protection Results