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The concept of comparative advantage is not utilized, cheaper prices are not developed for consumers and inefficient and uncompetitive industries are allowed to continue to operate. Hence the protectionist policies of increased tariffs, subsidies, quotas and even embargoes impact negatively on both the domestic and global economy.
With domestic economies, implanting tariffs on imported and giving subsidies to their own domestic produces inefficient industries. The resources of the domestic economy are not being utilized as the resources in the inefficient industries could be better utilized in efficient competitive industries which then can export products overseas, increasing GDP and domestic employment...
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