Trade protectionism is a defensive measure, usually politically motivated, used by countries when they are having their industries decline due to unfair competition from foreign counterparts, this is done mainly through the use of tariffs or tax on imported goods. This strategy usually works short term, however long term it usually causes damage to the protected industry by making them less competitive in the world market. (cite definition) There are many positive benefits from Trade Protectionism one being that it allows newly formed industries time to be able to figure out how to produce the good efficiently and secondly gives them time to develop their own competitive advantages. The third thing Protectionism does is that it temporarily creates jobs for domestic citizens. (cite advantages of tp)
Fourthly, some governments provide subsidies and loans to businesses that are failing to compete against their foreign competitors. These actions restrict the free market by offering benefits to domestic companies while imposing consequences upon foreign businesses.
Lastly, Trade Protectionism benefits businesses by creating trade barriers. Tariffs discourage foreign businesses from investing in your country. Consumers don 't see the tax. They only see the price that is attached to the item. The increase price in turn discourages consumers from pu...
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...untries impose tariffs and trade barriers it initially makes the country poorer. True, at first businesses will prosper and workers will generally have higher wages than they otherwise would under free trade, but consumers will suffer by paying higher prices. Consumers don 't wait for prices to increase to purchase what they need. They wait for prices to fall then they buy the products that they need.
When it comes to the Free Trade versus Protectionism debate, arguments for protectionism usually outline what is fair and not what is right. It should not be about what is fair, it should instead be about which policies make the economy better or worse as a whole. Competition is better for the economy. If a business or country cannot compete against a foreign competitor in an industry, then maybe it shouldn 't be in the business of providing those products (cite book).
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