Which of the following is TRUE with regard to protectionism?
A) It increases the availability of raw materials for domestic industries.
B) It decreases the cost of products sold in the home market.
C) It increases the availability of products sold in the home market.
D) It can trigger retaliation from foreign governments, which reduces sales prospects for exports.

Question

Quizplus · Accepted Answer

Protectionism, by imposing tariffs or quotas on imports, can lead to retaliatory measures from other countries. These retaliatory measures can reduce the sales prospects for a country's exports as other countries may impose similar restrictions on goods coming from a country that practices protectionism.

Which of the Following Is TRUE with Regard to Protectionism