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An industry grows under government protection but becomes weak when global competition enters. What managerial lesson does this show?

Answer and explanation

Correct answer: Efficiency improvement is necessary even during protection

The direct answer is A: efficiency improvement is necessary even during protection. Government protection may reduce foreign competition for a time, but it does not guarantee permanent strength. A protected industry can become comfortable, wasteful, or technologically backward. When global competition arrives, firms must compete on cost, quality, productivity, innovation, and service. Option A gives the correct managerial lesson: use the protected period to improve efficiency and build genuine capability. Option B is wrong because protection does not always provide a permanent advantage; policies can change and competitors can enter. Option C is wrong because competition can arrive through trade, technology, policy reform, or new firms. Option D is wrong because government policies such as tariffs, subsidies, and restrictions clearly influence business conditions. The lesson is to treat protection as temporary support, not as a substitute for improvement. Exam cue: temporary political help cannot replace long-term competitiveness.

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Business-EnvironmentPolitical-EnvironmentClass-12Expert

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