Question

Issues surrounding trade protectionism and nationalist policies of some countries?

Answer 1

Issues surrounding trade protectionism and nationalist policies over the some countries-Trade protectionism is defined as a nation, or sometimes a group of nations working in conjunction as a trade bloc, creating trade barriers with the specific goal of protecting its economy from the possible perils of countries trading. This is the opposite of free trade in which a government allows its citizenry to purchase goods and services from other countries or to sell their goods and services to other markets without any governmental restrictions, interference, or hinderances. The objective of trade protectionism is to protect a nation’s vital economic interests such as its key industries, commodities, and employment of workers. Free trade, however, encourages a higher level of domestic consumption of goods and a more efficient use of resources, whether natural, human, or economic. Free trade also seeks to stimulate economic growth and wealth creation within a nation’s borders.

The world is dominated by nationalistic economic policies; the competitive, open environment assumed by international trade economists simply doesn’t exist. While the United States plays by the rules of the free market, foreign governments support targeted industries with subsidies, selective procurement, and trade protection of the countries.