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How does the protectionist policy adopted by a government help its labor force? A protectionist policy might guard a country’s labor force from in the short term. But in the long term, the global marketplace leads to in general.

User Petr Broz
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Final answer:

Protectionist policies help domestic industries by imposing higher prices on imports, beneficial in the short term for saving jobs. However, this leads to higher costs for domestic consumers and might result in job losses in unprotected sectors. Ultimately, protectionism hampers economic gains from international trade concepts like comparative advantage and economies of scale.

Step-by-step explanation:

Protectionist Policies and the Labor Force

How does protectionist policy adopted by a government help its labor force? This policy can provide short-term benefits by saving jobs in industries that are shielded from foreign competition. Domestic consumers, which may include households or firms, are required to pay higher prices for products, benefitting domestic producers. However, protectionist policies ultimately lead to a loss of economic gains for the country. These gains would come from comparative advantage, specialized learning, and economies of scale—concepts central to international trade.

While protectionism may safeguard specific domestic industries, it imposes higher costs and restricts spending on other goods, leading to job loss in unprotected industries. Additionally, firms that use protected products as inputs may face higher costs and lose competitiveness in the global market. Overall, while protectionism reshuffles jobs by protecting some industries, it does not create more jobs and carries a significant opportunity cost.

User Slawomir Dziuba
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