Trade protectionism

Question

Trade protectionism

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Trade protectionism refers to the practice of using government regulations to limit the import of goods and services in order to protect domestic industries. It can take various forms, including tariffs, quotas, and subsidies. It is generally considered a barrier to global trade and can lead to retaliation by other countries, which can harm international relations and reduce the overall benefits of trade. It does not always lead to a favorable balance of trade, as it can make imports more expensive and reduce demand for them, but it can also increase domestic production and exports. It does not encourage dumping by foreign industries in the home country, as dumping refers to selling goods at a lower price than in the country of origin, which is typically done to gain market share or undermine competition.

Trade Protectionism