Question

In nearly half the cases in which u.s. firms have requested protection from imports, one or more u.s. companies in the industry opposed the protection. what was the reason for opposing protection?

Answer 1

The main reason is that they thought they could not only successfully battle international rivals, but could gain on weaker domestic competitors that failed to do so. This subject is related to mercantilism and one of the characteristics is the use of high import barriers and export subsidies.