Protectionism: The Strengths And Limitations Of International Trade

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In order for a country to run well, it is crucial to provide the goods and services that its citizens need and want. Some countries are able to produce many different goods efficiently while others struggle. This could be because economic resources vary by country, not all nations are experts in the same technologies, and some consumers prefer different quality in the goods that they purchase. For these reasons, it is beneficial for nations to trade. However, there are several protection measures that are necessary for nations to take while engaging in trade, including tariffs, import quotas, and other trade barriers. Protectionism is the use of methods to make imported goods less appealing over domestic goods. Among the ways that countries…show more content…
They would say that competition is healthy and necessary for economic growth. However, there are many reasons why trade barriers are beneficial and play an important role in international trade. Some of these reasons include being self-sufficient in producing military goods, trying to avoid becoming too specialized in our industries, keeping new industries alive domestically, protecting against foreign competition, and increasing domestic employment while reducing the number of jobs outsourced to other countries because of their cheaper labor…show more content…
The United States still has a military presence around the world and we need to have measures in place to protect the manufacturing of new equipment. It is a matter of national security to be self-sufficient in this area in order to avoid other countries knowing more information about our equipment. We also must remain diversified in the types of industries that are local. Becoming too specialized and relying on other countries could be a dangerous risk. When new industries are introduced, trade barriers help to ensure that these businesses become established domestically instead of allowing foreign competition to overtake the new industries quickly. Protecting again foreign countries creating monopolies by selling goods for a price below what other countries can even produce them for is a high priority among many nations. Trade barriers also protect against cheap foreign labor from flooding the market and increases employment domestically. Tariffs generate additional revenue for the federal government, which benefits the economy. Overall, trade barriers, including tariffs, quotas, and subsidies, provide necessary protection in order to maintain a healthy
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