Economics Notes

➡️ Protectionism is the practice of shielding a country's domestic industries from foreign competition by imposing tariffs, quotas, or other restrictions on imports. It is often used to protect domestic producers from foreign competition, to protect jobs, and to promote economic growth.

➡️ Protectionism can be beneficial in the short-term, as it can help to protect domestic industries from foreign competition and create jobs. However, in the long-term, it can lead to higher prices, reduced competition, and slower economic growth.

➡️ Protectionism can also lead to retaliatory measures from other countries, which can lead to a trade war. This can have a negative impact on the global economy, as it can lead to higher prices, reduced trade, and slower economic growth.

➡️ Protectionism can lead to higher prices for consumers, as domestic producers are shielded from foreign competition and can charge higher prices.
➡️ Protectionism can lead to a decrease in economic efficiency, as domestic producers are not exposed to the same competitive pressures as foreign producers.
➡️ Protectionism can lead to a decrease in global trade, as countries impose tariffs and other restrictions on imports and exports. This can lead to a decrease in economic growth and an increase in global poverty.