A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.
A)it is difficult to identify industries that have a high probability of reaching competitiveness
B)assistance should be given only if entry barriers to new firms are very low
C)the protecting countries lose too much revenue from import duties
D)a short product life cycle makes the industry quickly noncompetitive

Question

Quizplus · Accepted Answer

It is difficult to identify which industries have a high probability of reaching competitiveness. Trade protectionism may provide temporary relief for a domestic industry, but it does not address the underlying issues that prevent it from becoming globally competitive. Additionally, protectionism can harm other domestic and international industries, leading to a trade war and further economic problems.

A Problem That Can Arise in Using Trade Protectionism to Develop