Protectionism can harm domestic industries from "summary" of Basic Economics by Thomas Sowell
Protectionism, the policy of imposing restrictions on imports to protect domestic industries, may seem like a good idea at first glance. However, the reality is that protectionism can often have unintended consequences that end up harming the very industries it was meant to help. When a country imposes tariffs or quotas on imported goods, it may provide a short-term boost to domestic industries by making foreign goods more expensive. This can give domestic producers a temporary advantage in the market, allowing them to increase production and sales. However, this advantage is often short-lived. When domestic industries are shielded from competition, they may become complacent and less efficient. Without the pressure to innovate and improve their products, they may fall behind their foreign competitors in terms of quality and cost. Furt...
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