An inefficient manufacturing base is likely to result when:
A)only those goods are produced in which the domestic economy has a comparative advantage.
B)a newly developing economy has no international trade controls.
C)competitive foreign imports are restricted.
D)the economy produces only those goods in which it has technical expertise.
E)producers compete solely on the basis of low cost.

Question

Quizplus · Accepted Answer

Restricting competitive foreign imports can lead to inefficiency as it reduces the pressure on domestic producers to innovate and improve, leading to a less efficient manufacturing base.

An Inefficient Manufacturing Base Is Likely to Result When