If a country imposes a barrier on trade, the resultant effect will be _________
Question 1 Report
If a country imposes a barrier on trade, the resultant effect will be _________
Answer Details
If a country imposes a barrier on trade, such as tariffs or quotas, it will result in an increase in the cost of imported goods. This makes them less competitive compared to domestically produced goods, leading to an increase in demand for locally produced goods. As a result, local industries will experience a boost in sales and may expand to meet the growing demand. This can result in the growth of infant industries, which may not have been able to compete with cheaper imports before the trade barrier was imposed. However, the downside is that it can also lead to higher prices for consumers and potentially limit the variety of goods available in the market.
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