Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

A small trading country chooses a policy of import substitution by making goods domestically. What is the most likely reason for this policy?

  • Ato follow the principle of absolute advantage
  • Bto influence world prices in international markets
  • Cto protect local industries from foreign competition
  • Dto substitute imported machines for local labour

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