Understanding Protectionism and Its Impacts

What is the primary goal of protectionist measures in a country like Drawland?

• To encourage foreign investment

• To reduce domestic employment

• To protect domestic industries

• To increase foreign competition

How do protectionist policies initially benefit emerging sectors?

• By eliminating the need for innovation

• By reducing domestic market competition

• By lowering production costs

• By increasing foreign market access

What is a potential negative impact of long-term protectionism?

• Increased international trade

• Enhanced product innovation

• Improved foreign relations

• Higher product prices

What consequence did President Riculo face due to protectionist policies?

• An increase in international allies

• A mountain of debt

• A surplus of foreign goods

• A boost in global economic growth

What action did President Riculo take to address the negative impacts of protectionism?

• Banned all foreign products

• Isolated the domestic market further

• Strengthened trade relationships

• Increased import tariffs