select all the correct answers. what are the drawbacks of protectionism? stagnation in quality, efficiency…

select all the correct answers. what are the drawbacks of protectionism? stagnation in quality, efficiency, and innovation prohibition of subsidies to domestic industries preventing small businesses from closing down increased prices and lack of product variety risk of retaliatory protectionist measures

select all the correct answers. what are the drawbacks of protectionism? stagnation in quality, efficiency, and innovation prohibition of subsidies to domestic industries preventing small businesses from closing down increased prices and lack of product variety risk of retaliatory protectionist measures

Answer

Brief Explanations:

Protectionism can lead to less competition, causing stagnation in quality, efficiency, and innovation. It may also result in higher prices and less product variety as domestic industries face less international competition. Additionally, it risks retaliatory protectionist measures from other countries. Protectionism does not prohibit subsidies to domestic industries; in fact, it often involves them. Preventing small - businesses from closing down is not a drawback but rather a potential goal of some protectionist policies.

Answer:

  • stagnation in quality, efficiency, and innovation
  • increased prices and lack of product variety
  • risk of retaliatory protectionist measures