1)What is protectionism? Is it a good thing? Why / why not? How does it relate w
ID: 369973 • Letter: 1
Question
1)What is protectionism? Is it a good thing? Why / why not? How does it relate with trading? Make sure to provide a comprehensive definition of protectionism.2)Discuss how protectionism distorts supply/demand equilibria.
3)How do governments around the world implement protectionist policies?
4)Who benefits and who loses in countries with protectionist policies?
1)What is protectionism? Is it a good thing? Why / why not? How does it relate with trading? Make sure to provide a comprehensive definition of protectionism.
2)Discuss how protectionism distorts supply/demand equilibria.
3)How do governments around the world implement protectionist policies?
4)Who benefits and who loses in countries with protectionist policies?
Make sure to provide a comprehensive definition of protectionism.
2)Discuss how protectionism distorts supply/demand equilibria.
3)How do governments around the world implement protectionist policies?
4)Who benefits and who loses in countries with protectionist policies?
Explanation / Answer
1) Protectionism is the technique by which a country shields the domestic producers from the international competition. In order to shield the policy of taxing the imports is implemented. Import quotas, tariffs, taxes are the few methods with the help of which this policy of protectionism is implemented and international trade is restricted to promote competition among domestic industries and also to discourage foreign producers from entering local market.
It is good because it gives the dom stick producers an opportunity to flourish their business and also produce quality goods so that the need and demand for foreign goods s curbed. Another benefit of this technique is that it also helps the economy in flourishing and increasing the amount of exports to earn foreign exchange.
It is related to trading because the imports are taxed highly to demotivate the consumers from buying the imported goods due to high prices. The trade becomes a bit difficult in this case because the imports are totally restricted and the exports are promoted. This discourages other countries from importing your goods also.
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