Why are offsets considered protectionist measures?
A)Exporters must often find markets for goods outside their lines of expertise.
B)Exports must be sold at a certain percentage price below the price of domestic producers.
C)Companies must submit samples to government authorities before receiving export permission.
D)Trading companies must incur additional inventory carrying charges and pay significantly higher tariffs.

Question

Quizplus · Accepted Answer

Offsets are considered protectionist measures because they require foreign companies to invest in the local economy, either by establishing local production facilities or by partnering with domestic firms. This shields the domestic industry from foreign competition and supports local jobs, which is a protectionist policy objective.

Why Are Offsets Considered Protectionist Measures