In what way does protectionism affect local businesses?

Protectionism refers to government policies that restrict international trade to support local businesses and industries. When a government implements protectionist measures, such as tariffs, quotas, or subsidies, it creates a more favorable environment for domestic companies.

These measures help local businesses gain an advantage by reducing the competition they face from foreign producers. With fewer foreign goods available in the market, local firms can capture a larger share of domestic demand. This can lead to increased sales, higher profits, and the potential for growth within the local economy. Moreover, protectionism can help local businesses maintain their market presence and can preserve jobs in industries that might otherwise struggle due to foreign competition.

This context illustrates how protectionist policies can be beneficial for local businesses, making the chosen answer correct. In contrast, the other options either do not align with the effects of protectionism or directly contradict its intended purpose of shielding local industries.