Assess the likely effects of protectionism on Northfield Cycles. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 3

1. Indonesian businesses may see increased demand due to reduced competition from foreign brands, leading to higher sales for local bicycle and equipment manufacturers.
2. Local retailers might experience lower costs as foreign imports become less accessible, allowing them to thrive.
3. The land prices in Indonesia may rise due to this increased local business activity and demand for expansion.

Local retailers and suppliers are likely to see an increase in profit margins due to reduced competition from foreign suppliers. However, this could also lead to complacency in innovation and quality in the local market as businesses may feel less pressure to remain competitive. Increased prices for consumers could occur, affecting overall market dynamics.