Economics 2281 · O Level · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

What is one disadvantage of protecting manufactured goods through trade protection?

  • AIt can lead to retaliation from trading partners.
  • BIt encourages infant industries to grow.
  • CIt increases demand for domestic manufactured goods.
  • DIt reduces outflows of currencies to pay for imports.

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