Which of the following represents the controversial practice of supporting domestic businesses at the expense of free market competition?
A) Embargos
B) Quotas and tariffs
C) Protectionism
D) Local content law
E) Cartels

Question

Quizplus · Accepted Answer

Protectionism is the controversial practice of supporting domestic businesses at the expense of free market competition. Embargoes can also limit free trade, but they are typically imposed for political reasons rather than economic ones. Quotas and tariffs can limit imports, but they can also be used to protect domestic businesses. Local content laws require a minimum percentage of content to be sourced locally, but they do not necessarily limit foreign competition. Cartels are agreements between businesses to limit competition, but they are not typically supported by governments.

Which of the Following Represents the Controversial Practice of Supporting