Critics of protectionism may argue that the practice ________.
A) reduces prices
B) reduces competition
C) creates friendships between nations
D) creates price stability

Question

Quizplus · Accepted Answer

Protectionism reduces competition by shielding domestic industries from foreign competition, which can lead to inefficiencies and higher prices for consumers. While protectionism may provide some short-term benefits, such as increased job protection, in the long run it can harm the overall economy. It does not necessarily create price stability, as domestic industries may choose to increase prices rather than compete on price. There is also no guarantee that protectionism will lead to increased friendships between nations, as it can lead to trade tensions and retaliation.

Critics of Protectionism May Argue That the Practice ________