What is protectionism in economics?

Economics Protectionism Questions



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What is protectionism in economics?

Protectionism in economics refers to the practice of imposing restrictions on international trade in order to protect domestic industries and businesses from foreign competition. These restrictions can take various forms, such as tariffs, quotas, subsidies, and non-tariff barriers. The main objective of protectionism is to shield domestic industries from foreign competition, promote domestic employment, and safeguard national economic interests. However, protectionist measures can also lead to higher prices for consumers, reduced efficiency, and retaliation from trading partners.