Trade protection will assit economic growth in developing countries if it can
ECONOMICS
WAEC 2023
Trade protection will assit economic growth in developing countries if it can
- A. allow the importation of cheaper goods people want
- B. effectively safeguard newly established firms
- C. eliminate importation of all commodities
- D. generate enough revenue through export duties
Correct Answer: B. effectively safeguard newly established firms
Explanation
Newly established firms in developing countries often face stiff competition from established foreign firms. Trade protection can help these new firms to compete by shielding them from some of the competition. This can give them time to grow and develop, and eventually become competitive on their own.
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