French Government Against French Consumers
The government of France puts pressure on Renault to build its new Clio in France rather than in low-cost Turkey - a protectionist measure.
The first effect from forcing Renault to build its new car in a place with higher costs - which the company prefers not to do - would be that the car will be more expensive. I sthat good for consumers in France or elsewhere? Does it make the company and its products more competitive?
The second effect is that incomes in Turkey will be lower, meaning that they can purchase fewer goods from France.
The third effect is that old-style manufacturing is kept in France, thereby halting their way into the more prosperous services society.
As usual with protectionism and government interventions in business - everyone loses.
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French protectionism