Question

What are the pros and cons of a protectionist trade policy with of international trade theory in mind

Answer 1

Protectionism starts as a conflict between two or more Nations regarding trade tariff imposition on each others goods and services.Protectionism is usually initiated when a nation imposes tariffs are quotas on imports and foreign countries retaliate with similar forms of trade protectionism. In protectionist policy tariffs and duties impose. Impose quotas on imported goods this method is more effective than other methods no matter how long foreign countries set the price through subsidies it cannot ship more goods.

Pros of protectionist trade policy:-

A. Protectionism temporarily create job for domestic workers.
B. The protection of tariffs quotas are subsidies allows domestic companies to hire locally.
C. With imposing tariffs countries protects their economy with foreign competitors. this provides the new companies time to develop their own competitive advantages.with protectionist policies authorities can likewise utilise tariffs and quotas to meet outside strategy targets whether they are being utilised as a carrot or a stick.

Cons of protectionist policies:-
Increasing protectionism can further slowdown economic growth.

Countries close their borders with response of that other countries will do the same.it could cause layoff among the workers who owe their job to exports.
protectionism in long-term wood hamper global economy due to reduce trade volume among Nations. The IMF noted that the US China trade tension was one factor that contribute to a significantly weakened global expansion. The great ancient code result increasingly e recommended global trading framework, weakening the rules based system that has underpinned global growth particularly in in poor countries over the past several decades.