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
2 answers:
Protectionism policies protect domestic industries against foreign competition. But it leads many negative impacts:
Stagnate in quality, efficiency and innovation.
Increases prices and product varities.
risk of retaliatory protectionist measures.
These are benefits):
Prohibition of subsidies to domestic industries.
Prevent small industries from closing down.
Risk of retaliatory protectionist measures
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