What are the economic theories that support protectionism?

There are several economic theories that support protectionism, which is the policy of imposing restrictions on imports to protect domestic industries. These theories include:

1. Infant Industry Argument: This theory suggests that protectionism is necessary to nurture and protect new and emerging industries in a country. By shielding these industries from foreign competition, they can grow and become competitive in the long run. The argument is that without protection, these industries may not survive the initial stages due to the inability to compete with established foreign competitors.

2. National Security Argument: This theory argues that certain industries are crucial for national security and should be protected from foreign competition. Industries such as defense, aerospace, and telecommunications are considered vital for a country's security and protectionism is seen as a way to ensure their sustainability and control.

3. Strategic Trade Policy: This theory suggests that protectionism can be used strategically to gain a competitive advantage in international trade. By protecting domestic industries, governments can create a favorable environment for these industries to develop and become globally competitive. This can lead to increased exports and economic growth in the long run.

4. Employment Protection: Protectionism is often supported on the grounds of preserving domestic jobs. The argument is that by restricting imports, domestic industries can maintain or increase employment levels, preventing job losses that may occur due to foreign competition. This theory is particularly relevant in industries that are labor-intensive and face significant competition from low-wage countries.

5. Balance of Payments: Protectionism can also be justified based on the need to maintain a favorable balance of payments. By limiting imports, a country can reduce its trade deficit and protect its currency from depreciation. This theory argues that protectionism can help maintain a stable and sustainable balance of payments position.

It is important to note that while these theories provide arguments in favor of protectionism, they are not universally accepted and have been subject to criticism. Critics argue that protectionism can lead to inefficiencies, higher prices for consumers, retaliation from trading partners, and hinder global economic growth.