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- National Security Argument. National security protectionist arguments pertain to the risk of dependency upon other nations for economic sustainability. learning objectives.
- Infant Industry Argument. Economic markets are inherently competitive and newer economies are vulnerable to their more developed counterparts in other countries.
- Unfair Competition Argument. One of the strongest arguments for trade protectionism is unfair competition emerging due to differences in policy and enforcement ability.
- Jobs Argument. Many policy makers who are proponents of trade protectionism argue that limiting imports will create or save more jobs at home. learning objectives.
In applying this approach to trade policy, economists generally hy- pothesize producers and particular income groups to be the demanders of protectionism who seek to maximize the present value of the additional income they can obtain by reducing imports. Elected representatives (or
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Lukauskas argues that political factors fundamentally influence commercial policy design and implementation, including the decisions to impose or remove barriers to trade such as tariffs, quotas, and non-tariff barriers.
One of the strongest arguments for some degree of trade protectionism is the tendency for unfair competition to emerge, particularly in developing markets without the infrastructure to monitor their businesses and enforce penalties.
- Protectionism Definition
- Protectionism Methods
- Protectionism vs. Free Trade
- Protectionism Pros and Cons
- Sources and Further Reading
Protectionism is a defensive, often politically-motivated, policy intended to shield a country’s businesses, industries, and workers from foreign competition through the imposition of trade barriers such as tariffs and quotason imported goods and services, along with other government regulations. Protectionism is considered to be the opposite of fr...
Traditionally, governments employ four main methods of implementing protectionist policies: import tariffs, import quotas, product standards, and subsidies.
Free trade—the opposite of protectionism—is a policy of completely unrestricted trade between countries. Devoid of protectionist restrictions like tariffs or quotas, free trade allows goods to move freely across borders. While both total protectionism and free trade have been tried in the past, the results were usually harmful. As a result, multila...
In poor or emerging countries, strict protectionist policies like high tariffs and embargoes on imports can help their new industries grow by protecting them from foreign competition. Protectionist policies also help create new jobs for local workers. Protected by tariffs and quotas, and bolstered by government subsidies, domestic industries are ab...
Irwin, Douglas (2017), "Peddling Protectionism: Smoot-Hawley and the Great Depression," Princeton University Press.Irwin, Douglas A., "Tariffs and Growth in Late Nineteenth-Century America." World Economy. (2001-01-01). ISSN 1467-9701.Hufbauer, Gary C., and Kimberly A. Elliott. "Measuring the Costs of Protectionism in the United States." Institute for International Economics, 1994.C. Feenstra, Robert; M. Taylor, Alan. "Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century." National Bureau of Economic Research. ISBN: 978-0-226-03075-3- Robert Longley
Jun 24, 2017 · short-term political forces should not determine the level of state intervention into the market. The second, to protect against unfair trade, emanates from a long history of state support for industries that claim foreign producers are pursuing unfair predatory practices.
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Mar 2, 2017 · The argument goes that if each country focused and specialized on what they do best or cheapest, they would produce better quality or cheaper products. These could then be traded between...
