What is a common result of protectionism in international trade?

• A. Increased competition
• B. Higher prices for consumers
• C. Better quality products
• D. More innovation in design

Answer: (B)

Protectionism in international trade often leads to higher prices for consumers due to the imposition of tariffs, quotas, and other trade barriers on imported goods. These measures are designed to shield domestic industries from foreign competition, which can limit the availability of goods on the market. When there are fewer imports, the reduced competition among suppliers can result in domestic companies raising their prices, as consumers have fewer options available to them. As a consequence, consumers end up paying more, which is a direct outcome of protectionist policies that restrict market access.

In contrast, increased competition, better quality products, and more innovation in design are generally associated with free trade rather than protectionist policies. In an open market, competition encourages companies to improve their offerings and prices, ultimately benefiting consumers.