What is Protectionism?
Protectionism is the economic policy of restraining trade between nations through qualitative and quantitative methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations.
They are designed to discourage imports, and prevent foreign take-over of local markets and companies.This is a policy of anti-globalization and almost opposite to free trade. The term protectionism is used because this doctrine protects the business and labour within a country by restraining trade with foreign countries.
Thus, Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods,restrictive quotas, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over or competition.
A variety of policies can be used to achieve protectionist goals. These include:Tariffs, Import Quotas, Administrative Barriers, Export subsidies, Government subsidies & exchange rate manipulation.