Question

With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

Answer 1

Answer) Protectionism trade policies aim to protect domestic traders against foreign traders by using means such as tariffs,unfavorable conditions for foreign players,setting trade rules or allowing domestic players advantage,the idea is to ensure that domestic players do not suffer at any cost,at times it is borne by fear or past experience,at times it is driven by political pressure but these policies at times does more harm to development of developing countries than good,for example a lot of companies do not enter such countries leading to loss of employment opportunities for that country,in developing countries unemployment is a major challenge and is not helped by such policies which can lead to major hurdle for socio-economic development,another example could be when domestic players do not innovate owing to no competition because of such policies leading to poor conditions for lot of things again impacting development,final example could be when such policies lead to country missing out on expertise,better resources,raw materials etc. which it could have gained had it for not this policy leading to significant impact on growth of country 's economy as well as its citizens.In conclusion such policies in a world which is so inter-connected can be disastrous for developing countries's socio-economic growth as explained above.

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