Meaning Of Protectionism In The Context Of International Trade
Economics notes
Meaning Of Protectionism In The Context Of International Trade
➡️ Protectionism is an economic policy that restricts international trade through tariffs, quotas, and other restrictions. It is used to protect domestic industries from foreign competition and to promote domestic economic growth.
➡️ Protectionism can have both positive and negative effects on an economy. On the one hand, it can protect domestic industries from foreign competition, allowing them to grow and develop. On the other hand, it can lead to higher prices for consumers, reduced competition, and decreased efficiency in the economy.
➡️ Protectionism can also lead to retaliatory measures from other countries, resulting in a trade war. This can have a negative effect on the global economy, as countries become less willing to trade with each other.
What is protectionism in the context of international trade?
Protectionism is an economic policy that restricts international trade through tariffs, quotas, and other restrictions in order to protect domestic industries from foreign competition. It is often used to protect domestic jobs and industries from foreign competition, and to protect domestic producers from foreign competition.
What are the advantages and disadvantages of protectionism?
The advantages of protectionism include protecting domestic jobs and industries, providing a competitive advantage to domestic producers, and allowing governments to raise revenue through tariffs. The disadvantages of protectionism include higher prices for consumers, reduced competition, and reduced economic efficiency.
How does protectionism affect international trade?
Protectionism affects international trade by restricting the flow of goods and services between countries. This can lead to higher prices for consumers, reduced competition, and reduced economic efficiency. It can also lead to retaliatory measures from other countries, which can further reduce international trade.