What is a potential negative outcome of strong nationalism in a country?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

Strong nationalism in a country can lead to the implementation of trade barriers, which is a significant potential negative outcome. When a nation prioritizes its own interests and identity above all else, it may adopt protectionist policies to shield domestic industries from foreign competition. This can manifest in various forms, including tariffs, quotas, and import restrictions, making it more difficult and expensive for foreign businesses to operate within that country. Such trade barriers can hinder international trade and economic cooperation, ultimately leading to retaliatory measures from other nations and a decline in global economic connectivity.

In contrast, increased foreign direct investments, enhanced international collaborations, and promotion of international tourism are generally associated with more open and globally integrated economies. Strong nationalism tends to foster an inward-looking attitude that may discourage these positive aspects of international business engagement.

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