Question

what are the drawbacks of protectionism?
stagnation in quality, efficiency, and innovation
prohibition of subsidies to domestic industries
preventing small businesses from closing down
increased prices and lack of product variety
risk of retaliatory protectionist measures

Explanation:

Protectionism limits competition. Without foreign competition, domestic firms may have less incentive to improve quality, efficiency, and innovate. It can also lead to higher prices due to lack of competition and reduced product variety. Additionally, imposing protectionist measures risks retaliation from other countries. Subsidies are often a part of protectionist policies, not prohibited by them. Preventing small - businesses from closing down is not a drawback but can be seen as a potential benefit in some cases.

Answer:

A. stagnation in quality, efficiency, and innovation
D. increased prices and lack of product variety
E. risk of retaliatory protectionist measures