Protectionism (redirected from Economic protectionism)

Protectionism

Notion that governments should protect domestic industry from import competition by means of tariffs, quotas, and other trade barriers.

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protectionism

The establishment of barriers to the importation of goods and services from foreign countries in order to protect domestic producers. Protectionism generates higher consumer prices. It is also likely to penalize domestic exporters because foreign countries are apt to retaliate with trade barriers of their own.

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Protectionism

Any government policy or regulation that restricts international trade. Examples include import quotas, which set a maximum number of imports for a certain good over a given period of time, and import substitution, in which the state subsidizes businesses and industries to make domestic goods less expensive. By far the most common example, however, is the tariff, which is a tax on imports. Proponents of protectionism argue that it encourages domestic production of goods and helps working class people, while critics contend that it hurts the people it aims to help by discouraging competition, which may drive down prices. The balance of protectionism and free trade is a controversial topic regarding the government's role in international trade. See also: General Agreement on Tariffs and Trade.