Question

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

Answer 1

The trade protectionism refers to the practices where the government tends to impose the tariffs, quota, and other restrictions on the cheaper import. such a practice of trade protectionism helps to save the domestic industries from foreign competition.

The firms and industries of developing countries are in the nascent stage, these firms do not have enough developed technology that could compete with the firms of developed countries. Thus, initially, these firms and industries must be protected else the developing countries can never create larger firms or industries and will persistently remain dependent on the developed countries.

Trade protectionism leads to the socio and economic development of developing countries. The growth rate rises in these countries when infant industries become larger and people are able to secure the jobs and other opportunities. The economic prosperity and educational development in these countries automatically make the recipe for social changes.

Thus, developing countries must have the right amount of protectionism to save economics future of country, The china is foremost example of trade protectionism, where it has developed its own industries and these industries are now competing across the world.

After becoming free from the British empire, the US government also followed the policy of trade protectionsism to help its infant industries to become largers.