Protection of Domestic Industries
Protectionist measures like tariffs, import quotas, and subsidies are used to shield domestic industries from foreign competition. This can help protect jobs and promote the growth of domestic companies and industries.
Key Facts
- Protection of domestic industries: Protectionist measures such as tariffs, import quotas, and subsidies aim to shield domestic industries from foreign competition. This can help protect jobs and promote the growth of domestic companies and industries.
- National security concerns: Some argue that dependence on other nations for economic sustainability can pose a risk to national security. Protectionist policies can be seen as a way to reduce this dependency and safeguard the nation’s economic interests.
- Infant industry protection: Newer and less developed industries may require protection until they become efficient enough to compete in the global market. Protectionist measures can provide a nurturing environment for these industries to grow and become competitive.
National Security Concerns
Some argue that dependence on other nations for economic sustainability can pose a risk to national security. Protectionist policies can be seen as a way to reduce this dependency and safeguard the nation’s economic interests.
Infant Industry Protection
Newer and less developed industries may require protection until they become efficient enough to compete in the global market. Protectionist measures can provide a nurturing environment for these industries to grow and become competitive.
Citations
- “Justifications for Trade Restriction.” Lumen Learning, courses.lumenlearning.com/suny-microeconomics/chapter/reading-justifications-for-trade-restriction/.
- “Protectionism: Examples and Types of Trade Protections.” Investopedia, www.investopedia.com/terms/p/protectionism.asp.
- “31.5: Arguments for and Against Protectionist Policy.” Social Science LibreTexts, soci alsci.libretexts.org/Bookshelves/Economics/Economics_(Boundless)/31%3A_International_Trade/31.5%3A_Arguments_for_and_Against_Protectionist_Policy.
FAQs
What is protectionism?
Protectionism refers to government policies that restrict international trade to help domestic industries.
What are the main arguments for protectionism?
The main arguments for protectionism include protecting domestic industries, addressing national security concerns, and providing support for infant industries.
How does protectionism protect domestic industries?
Protectionist measures such as tariffs, import quotas, and subsidies can shield domestic industries from foreign competition, helping to protect jobs and promote the growth of domestic companies.
Why is national security a concern in international trade?
Some argue that relying on other nations for economic sustainability can pose a risk to national security. Protectionist policies can be seen as a way to reduce this dependency and safeguard the nation’s economic interests.
What is infant industry protection?
Infant industry protection refers to the use of protectionist measures to support new and developing industries until they become efficient enough to compete in the global market.
What are some examples of infant industry protection?
Examples of infant industry protection include tariffs on imported goods that compete with domestic products and subsidies for domestic producers.
What are the arguments against protectionism?
Critics of protectionism argue that it can lead to higher prices for consumers, reduced economic efficiency, and retaliation from trading partners.
What are some alternatives to protectionism?
Alternatives to protectionism include free trade agreements, which aim to reduce or eliminate trade barriers between countries, and policies that focus on promoting competitiveness and innovation in domestic industries.