Xenia needs to protect itself and protect its infant electronics industry. (third option)
<h3>What are protectionist policies?</h3>
Protectionist policies are policies enacted by a country to protect its domestic industries from foreign competition. Tools that can be used to enact protectionist policies include tariffs, subsidies and import quotas.
For example, if an import quota is enacted, there would be a limit on the amount of foreign electronics that would be imported into Xenia. This would improve the competitive power of firms in Xiena.
Without protective policies, local firms might not be able withstand foreign competition.
Here are the options:
Xenia needs to protect itself and promote its electronics exports.
Xenia needs to protect itself and build its national defense.
Xenia needs to protect itself and protect its infant electronics industry
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