A drawback of protecting Indian industry from imports for decades was that

firms had little reason to improve or cut costsCorrect answerYour answerforeign goods flooded the Indian marketCorrect answerYour answerIndian firms grew too efficient to need workersCorrect answerYour answerprices of Indian goods fell below world pricesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Shielded from competition, firms could sell goods of poor quality at high prices and still find buyers.

Concept: Criticism of protection
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsAchievements and failures

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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A drawback of protecting Indian industry from imports for decades was that

Explanation