Protectionism

Extracted Attributes

• Methods

  Tariffs on imported goods, import quotas, subsidies, government regulations, voluntary export restrictions, non-tariff barriers.

• Definition

  An economic policy of restricting imports from other countries.

• Primary Goal

  Shield domestic producers, businesses, and workers from foreign competition.

• Economic Consensus

  Generally has a negative effect on economic growth and welfare, unlike free trade.

• Historical Precedent

  Mercantilism (17th and 18th centuries).

• Opponents' Arguments

  Reduces trade, raises costs for consumers, negatively affects export sectors, encourages inefficient firms, less scope for specialization and economies of scale, limits market access, can trigger retaliatory measures.

• Proponents' Arguments

  Protects domestic jobs, supports small companies and industries, provides national security, fosters job creation, boosts GDP, protects infant industries, diversifies the economy, raises government revenue, consumer protection, public health preservation, environmental sustainability.

• Historical Link (Warfare)

  Attributed as a major cause of war (e.g., 17th-18th century European conflicts, American Revolution).

• Political Alignment (Advocates)

  Economic nationalist or left-wing political parties.

• Political Alignment (Opponents)

  Economically right-wing political parties (who generally support free trade).

• Historical Link (Economic Crises)

  Implicated as a cause of some economic crises, notably the Great Depression.

Timeline

• European monarchies favored protectionist policies, known as mercantilism, to increase trade and build domestic economies. (Source: Web Search Results)

  17th and 18th centuries

• Great Britain began to abandon its protective tariffs. (Source: Web Search Results)

  First half of 19th century

• Protectionism was implicated as a cause of the Great Depression. (Source: Summary, DBPedia, Web Search Results)

  Early 20th century

• Donald Trump implemented tariffs as a key trade policy, which Senator Rand Paul criticized as protectionist. (Source: Document 04665143-1312-4fbd-a0d5-66cc8bd963ea, Web Search Results)

  During Donald Trump's Presidency

Web Search Results

• Protectionism

  Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield the producers, businesses, and workers of the import-competing sector in the country from foreign competitors and raise government revenue. Opponents argue that protectionist policies reduce trade, and [...] Protectionism has been attributed as a major cause of war. Proponents of this theory point to the constant warfare in the 17th and 18th centuries among European countries whose governments were predominantly mercantilist and protectionist, the American Revolution, which came about ostensibly due to British tariffs and taxes. According to a slogan of Frédéric Bastiat (1801–1850), "When goods cannot cross borders, armies will." [...] There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth. However, protectionism can be used to raise government revenue and enable access to intellectual property, including essential medicines.

• Understanding Protectionism: Tools and Examples for Trade Policies

  Protectionism involves government policies that restrict international trade to support domestic industries, often by imposing tariffs, quotas, and subsidies. Import tariffs can be scientific, peril point, or retaliatory, each affecting the cost of foreign goods to benefit domestic markets. Import quotas limit the quantity of products entering a country, protecting local industries and preventing practices like dumping. [...] Protectionism involves government strategies designed to limit international trade to bolster domestic industries. These policies aim to enhance economic activity within a domestic market and address concerns related to safety and product quality. While protectionism is debated, its supporters claim it fosters job creation and boosts GDP by shielding homegrown businesses from global competition. ### Key Takeaways [...] Traditionally, protectionism is a left-wing policy. Right-wing politics generally support free trade, which is the opposite of a protectionist stance. Left-wing politics support economic populism, of which protectionism is a part. ## What Are the Arguments for Protectionism? Lawmakers who favor protectionist trade policies believe that they protect jobs at home, help support and grow small companies and industries, and provide a layer of security to the nation. ## The Bottom Line

• The Effects of Protectionism - Economics Help

  Protectionism occurs when countries place restrictions on imports into the economy. This can involve higher tariffs (a type of tax on imports) or quotas and embargoes. Other forms of protectionism can be less obvious, such as domestic subsidies to give industries unfair advantages. The main effect of protectionism is a decline in trade, higher prices for some goods, and a form of subsidy for protected industries. Some jobs in these industries may be saved, but jobs in other industries are [...] Protectionism can encourage inefficient firms to stay in business and there is less scope for specialisation and economies of scale. Protectionism can keep smaller national firms which can’t benefit from the same economies of scale. There is less competitive pressure for firms and economies to cut costs. [...] 1. Infant industry argument – protect new industries against free trade. Protectionism can enable some industries to survive. E.g. President Trump placed tariffs on steel imports to try and protect jobs in the US steel industry. 2. Diversify the economy – tariffs and protectionism can help develop new industries to give more diversification to the economy 3. Raise revenue for the government. 4. Protect certain key industries from international competition to try and safeguard jobs.

• Protectionism | Definition, Examples, & Facts

  protectionism, policy of protecting domestic industries against foreign competition by means of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports of foreign competitors. Protectionist policies have been implemented by many countries despite the fact that virtually all mainstream economists agree that the world economy generally benefits from free trade. [...] means of protectionism. These quotas set an absolute limit on the amount of certain goods that can be imported into a country and tend to be more effective than protective tariffs, which do not always dissuade consumers who are willing to pay a higher price for an imported good. [...] Throughout history, wars and economic depressions (or recessions) have led to increases in protectionism, while peace and prosperity have tended to encourage free trade. The European monarchies favoured protectionist policies in the 17th and 18th centuries in an attempt to increase trade and build their domestic economies at the expense of other nations; these policies, now discredited, became known as mercantilism. Great Britain began to abandon its protective tariffs in the first half of the

• THE IMPACT OF PROTECTIONIST POLICIES ON GLOBAL TRADE

  protectionism is one of its most significant problems. In lieu of relying solely on customs duties, contemporary protectionist approaches employ alternative measures such as voluntary export restrictions and various intangible trade barriers. These novel regulations primarily aim to shield nascent industries from foreign competition, while also encompassing additional objectives such as consumer protection, public health preservation, and environmental sustainability, tariff reduction has [...] Access: Protectionism can limit market access for foreign firms, making it challenging for them to compete in domestic markets. This can create barriers to entry and hinder the growth of international trade. Restricted market access limits consumer choices and can result in higher prices for goods and services. ● Retaliatory Measures: Protectionist actions by one country can trigger retaliatory measures from other nations. When countries engage in a cycle of protectionism, it can lead to a [...] multilateral trade talks under the auspices of the GATT, which is understood as an all-encompassing strategy. The second is the regional strategy, which refers to initiatives to liberalise international commerce by integrating a number of nations. 2.1. Protectionism in Liberal Trade: Countries can limit imports to their own markets by engaging in protectionism. Tariffs and non-tariff barriers like quotas and currency restrictions might imply protectionism. Protectionism proponents contend that

Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield the producers, businesses, and workers of the import-competing sector in the country from foreign competitors. Opponents argue that protectionist policies reduce trade and adversely affect consumers in general (by raising the cost of imported goods) as well as the producers and workers in export sectors, both in the country implementing protectionist policies and in the countries protected against. Protectionism is advocated mainly by parties that hold economic nationalist or left-wing positions, while economically right-wing political parties generally support free trade. There is a consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers have a significantly positive effect on economic growth. Some scholars, such as Douglas Irwin, have implicated protectionism as the cause of some economic crises, most notably the Great Depression. Although trade liberalization can sometimes result in large and unequally distributed losses and gains, and can, in the short run, cause significant economic dislocation of workers in import-competing sectors, free trade has advantages of lowering costs of goods and services for both producers and consumers.