General Education Development (GED) Practice Exam

An advantage of protectionism for a country is that it:

1. Improves global competitiveness

2. Retains domestic jobs in the short term

3. Encourages economic growth

4. Prevents corruption

The correct answer is: Retains domestic jobs in the short term

The concept of protectionism involves implementing policies that restrict international trade to help domestic industries. The primary advantage of protectionism, which particularly pertains to retaining domestic jobs in the short term, is that it shields local businesses from foreign competition. By imposing tariffs, quotas, or other barriers to imports, a country can create an environment where local companies are more likely to thrive, maintaining employment levels in those industries. As foreign products become more expensive or less accessible due to these trade barriers, consumers might turn to domestically produced goods instead. This increased demand can help sustain jobs that might otherwise be lost to international competition. In contrast, improving global competitiveness generally suggests fostering an open market where businesses can innovate and compete internationally, which is not a primary outcome of protectionist measures. Encouraging economic growth can occur as a result of protectionism, but it is often at the expense of higher prices and reduced choice for consumers. Preventing corruption is a separate issue that does not directly relate to the principles of protectionism.