Trade can stifle the development of industries than might be more efficient than existing ones.

Question

Quizplus · Accepted Answer

When countries engage in trade, they often prioritize the industries in which they already have a comparative advantage, rather than investing in new industries that may be more efficient. This can lead to a lack of development and innovation in these potentially more efficient industries. Additionally, competition from foreign industries can make it difficult for domestic industries to compete and grow, further stunting development.

Trade Can Stifle the Development of Industries Than Might Be