Analyse the benefits for a national firm of a government adopting protectionist trade policies?

Protectionism- when a government promotes national entrepreneurship, such as by imposing tariffs and quotas on imports.One benefit is that there would be less competition, as foreign companies would not find entering the market attractive. Therefore more likely for national firms to survive and grow.Another benefit would be, foreign firms have higher costs, from things like tariffs, so would charge higher prices. Therefore, national firms gain a competitive advantage, as they can charge lower prices than foreign competition.

Related Business Studies A Level answers

All answers ▸

Case Study: PLG Ltd’s financial position is relatively weak. To what extent should this be the most important influence on its promotional mix given its objective of growth


What is meant by the term 'gearing'?


To what extent does taking out a franchise reduce the benefits of being an independent sole trader?


Explain one advantage and one disadvanatge of using temporary staff. (6 marks)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences