A Problem That Can Arise in Using Trade Protectionism to Develop

question 7

Multiple Choice

A problem that can arise in using trade protectionism to develop international competitiveness for a domestic industry is that ________.

• A)it is difficult to identify industries that have a high probability of reaching competitiveness
• B)assistance should be given only if entry barriers to new firms are very low
• C)the protecting countries lose too much revenue from import duties
• D)a short product life cycle makes the industry quickly noncompetitive

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Definitions:

Process Innovations

The implementation of new or significantly improved production or delivery methods in an organization.

Product Innovations

The creation or significant improvement of goods or services that offer new or additional benefits to the customer.

Extrinsic Rewards

Benefits or incentives given to individuals by external factors or organizations, such as money, prizes, or recognition.

Creative Behaviour

The capability to come up with original and useful ideas, solutions, or approaches in various contexts.