Which statement best reflects a short-term benefit of protectionism?

Which statement best reflects a short-term benefit of protectionism?

• A. Increases consumer choice
• B. Leads to cheaper imported goods
• C. Ensures that domestic jobs will be retained in the short term
• D. Promotes immediate global efficiency

Answer: (C)

Protectionism can shield domestic industries from foreign competition, which in the near term helps keep workers employed. When imports are restricted or made more expensive, domestic firms often don’t have to immediately cut jobs in response to sudden import pressure, giving them time to maintain payroll and production while adjusting to the new trade environment. That direct effect—retaining jobs for a period of time—is why keeping domestic employment in the short term is the best reflect of a short-term benefit. In contrast, limits on imports typically raise prices for consumers and reduce choices, and they can dampen overall efficiency by reducing competitive pressure on firms.

Protectionism can shield domestic industries from foreign competition, which in the near term helps keep workers employed. When imports are restricted or made more expensive, domestic firms often don’t have to immediately cut jobs in response to sudden import pressure, giving them time to maintain payroll and production while adjusting to the new trade environment. That direct effect—retaining jobs for a period of time—is why keeping domestic employment in the short term is the best reflect of a short-term benefit. In contrast, limits on imports typically raise prices for consumers and reduce choices, and they can dampen overall efficiency by reducing competitive pressure on firms.