Kialo requires cookies to work correctly.
Is Protectionism a Bad Economic Policy?
Protectionism is a bad economic policy.
Increasing protectionism will further slow economic growth. It would cause more layoffs, not fewer.
Protection of companies inside the borders will reduce competition, thus make companies less prepared for an economic recession.
The allocation of resources is not efficient and opportunity costs are created
In the long term, trade protectionism weakens the industry. Without competition, companies within the industry have no need to innovate.
It immediately raises the price of the imported goods. They become less competitive when compared to local goods
It can be difficult to determine what deserves a tarrif. For example, if steel is taxed but steel kegs are not then we have a conflict.
Protectionsim allows producers to lower the price of local goods and services.
The protection of tariffs, quotas or subsidies allows domestic companies to hire locally.
Protectionism protects industries in developed countries from being destroyed by global neoliberal capitalism.
Protectionism can be used to avoid the import of products with negative environmental impacts, thereby stimulating sustainable (local) product development.
If a country is trying to grow strong in a new industry, tariffs will protect it from foreign competitors
Is globalisation good or bad?
China will face an economic downturn within the next 10 years.
Should Every Business be Allowed to Deny Service to Anyone?