Analyse the benefits for a national firm of a government adopting protectionist trade policies?

Protectionism- when a government promotes national entrepreneurship, such as by imposing tariffs and quotas on imports.One benefit is that there would be less competition, as foreign companies would not find entering the market attractive. Therefore more likely for national firms to survive and grow.Another benefit would be, foreign firms have higher costs, from things like tariffs, so would charge higher prices. Therefore, national firms gain a competitive advantage, as they can charge lower prices than foreign competition.

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Answered by Urja P. Business Studies tutor

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