The strategic argument for protectionism holds that a nation may sometimes have to threaten protectionism to induce other countries to drop their own protectionist measures.

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This is because the threat of protectionism may encourage other countries to reduce their own protectionist measures in order to avoid retaliation from the initial country. This strategic use of protectionism can be seen as a bargaining tool in international trade negotiations.

The Strategic Argument for Protectionism Holds That a Nation May