Question

What is a major disadvantage in the use of import barriers to make domestic goods cheaper?

a) Domestic manufacturers may lose the economic incentive to produce their cars less expensively.


b) Import manufacturers stop trying to send their goods to the country that has import barriers.


c)The line between imported and domestic goods becomes harder and harder to draw.


d) Domestic manufacturers create more jobs for both citizens and immigrants.

Answer 1

a) Domestic manufacturers may lose the economic incentive to produce their cars less expensively.

Step-by-step explanation:

Answer 2

The major disadvantage is that Domestic manufacturers may lose the economic incentive to produce their cars less expensively

Step-by-step explanation:

Import barriers also known as trade barriers are placed on the importation of certain locally produced goods and services, in order to encourage local producers and also drive the prices of the goods down. because locally produced products don't pay custom duties which end up driving prices of goods higher. but some locally produced products like cars get some economic incentive to help in the production of their cars but with the full effect of import barriers such economic may be lost causing the cost of production to get higher.