protectionism

Examples of protectionism in the following topics:

• From Protectionism to Liberalized Trade

  • At times in its history, the country has had a strong impulse toward economic protectionism (the practice of using tariffs or quotas to limit imports of foreign goods in order to protect native industry).
  • U.S. protectionism peaked in 1930 with the enactment of the Smoot-Hawley Act, which sharply increased U.S. tariffs.

• National Security Argument

  • This is a fundamental foundation for the trade protectionism logic from a national security perspective.
  • However, some argue self-sufficiency (via protectionism) in war is not necessary, as friendly nations will still provide trade and economic support.
  • Combining these ideas, it is clear that there is substantial national security value to trade protectionism.
  • Evaluate the arguments in favor of the use of trade protectionism in the security industry

• Infant Industry Argument

  • Trade protectionism is defined as national policy restricting international economic trade to alter the balance between imports and goods manufactured domestically, usually executed via policies and governmental regulations such as import quotas, tariffs, taxes, anti-dumping legislation, and other limitations.
  • Despite the standard argument from mainstream economists postulating that free trade and open markets is the ideal system to allow for capitalistic development, there are many economists who believe that some degree of protectionism is the only way to minimize income gaps and substantial inequity from economy to economy (see ).
  • This protectionism seems to have damaged industry prospects on a global level for Brazil in this scenario.
  • From a broader and more far-reaching perspective, protectionism as a general principle has been heavily criticized (even in infant industry situations).

• Unfair Competition Argument

  • One of the strongest arguments for trade protectionism is unfair competition emerging due to differences in policy and enforcement ability.
  • Protectionist policies are a highly charged topic in economic debates, as economies work to attain the optimal balance of free trade and trade protectionism to capture the most value.
  • 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.
  • Examine the use of protectionism as a way of addressing unfair competitive practices

• Jobs Argument

  • Many policy makers who are proponents of trade protectionism argue that limiting imports will create or save more jobs at home.
  • Many policy makers who are proponents of trade protectionism make the argument that limiting imports will create more jobs at home.
  • In the U.S. this has created a dramatic push for trade protectionism policies; something the United States has not actively pursued in quite some time.
  • This sentiment towards protectionism is a direct result of the jobs argument in view of an imbalanced trade ratio, where more exports (production and jobs at home) are required to sustain the ongoing consumption of imports.

• Imports: The Economics Impacts of Buying Goods from Other Countries

  • Protectionism is the economic policy of restraining trade between countries through tariffs on imported goods, restrictive quotas, and government regulations.
  • When trade barriers and policies of protectionism are eliminated, consumer surplus increases.

• A Summary of International Trade Agreements

  • International trade encounters a variety of obstacles, some of which pertain to the protectionism identified in other atoms, which reduce trade incentives.
  • These agreements demonstrate some of the validity behind trade protectionism and isolationism (as discussed in other atoms in this chapter).

• Impacts of Policies and Events on Equilibrium

  • Protectionism, for example, is a policy that interferes with the free workings of the international marketplace.
  • By implementing protectionism policies such as tariffs and quotas, a government can make foreign goods relatively more expensive and domestic goods relatively cheaper, increasing net exports and therefore aggregate demand.

• Glossary

  • Protectionism: The deliberate use or encouragement of restrictions on imports to enable relatively inefficient domestic producers to compete successfully with foreign producers.