Final answer:
Mexico's use of trade protectionism to support its industries could lead to job losses in unprotected sectors and difficulties in other industries due to higher input costs. It may also cause difficulty in identifying industries that can truly be competitive and could invite retaliatory measures from trading partners.
Step-by-step explanation:
If Mexico decides to use trade protectionism to help make its industries more competitive in the international markets, several problems could arise. One major issue is that while protectionism can save jobs in industries receiving protection, it tends to cost jobs in unprotected industries as consumers pay higher prices and have less to spend on other goods. Additionally, firms requiring input from the protected industry face increased costs, leading to a loss in competitiveness and potential job losses.
Another problem is the difficulty in identifying industries with a high probability of reaching competitiveness. Without clear targets, protectionist measures could be applied to industries with little chance of becoming globally competitive, thereby wasting resources. Finally, by imposing trade barriers, Mexico might invite retaliation from other countries, which could lead to a decrease in Mexican exports and harm industries reliant on export markets.