alleryStart learning →What is protectionism?
AProtecting home industries with artificial barriers to trade
BProtecting foreign investors from any change of government
CProtecting consumers from unsafe goods made in other countries
DProtecting workers by setting a minimum wage in every industry
Answer & Solution
Correct answer: A. Protecting home industries with artificial barriers to trade
1. Protectionism is the opposite of free trade.
2. Under it a nation protects its home industries from outside competition.
3. It does so by establishing artificial barriers such as tariffs and quotas.
4. Product safety rules and minimum wages serve other purposes and are not the definition.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.2 Why Nations Trade_
Keep practising Competing in the Global Marketplace
Browse all Competing in the Global Marketplace questions for BBA International Business, or explore more International Business topics.
Related questions
How many Sustainable Development Goals did the United Nations member nations adopt in 2015What defines a multinational corporation?How is Gross National Income defined?What is infrastructure?Why does business slow down in Muslim countries during Ramadan?What is nationalism?What is countertrade?What is direct foreign investment?