Trade barriers lead to decreased competition from abroad,and raise prices and profits of domestic firms.Interestingly,such protection over time will often lead to higher-quality domestic products and services.

Question

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Trade barriers limit competition, which can prevent domestic firms from improving their products and services to meet international standards. As a result, protectionism may lead to a lack of innovation, decreased efficiency, and higher prices for consumers.

Trade Barriers Lead to Decreased Competition from Abroad,and Raise Prices