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Explain how trade barriers save jobs in protected industries, but only by costing jobs in other industries.

a) By fostering innovation.
b) Through increased competition.
c) By limiting consumer choices.
d) Due to sector-specific protection.

1 Answer

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Final answer:

Trade barriers protect jobs in certain industries at the cost of higher consumer prices and reduced competitiveness in other sectors, which can lead to job losses economy-wide.

Step-by-step explanation:

Trade barriers protect jobs in certain industries by making foreign products more expensive, which then encourages consumers to buy domestically produced goods. This, in turn, helps maintain employment in industries that otherwise might lose out to international competitors. However, this type of protectionism leads to higher prices for consumers, who then have less to spend in other sectors, resulting in job losses in those areas.

Additionally, companies that rely on protected products as inputs end up paying more, which can make them less competitive internationally. Consequently, these firms may lose sales and cut jobs. Therefore, while trade barriers might save jobs in protected industries, they can have a negative impact on employment across the broader economy.

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