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    Protectionism

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    430-01 Protectionism: Good or Bad? Protectionism is the economic policy adopted by some nations to restrict the flow of goods to the country by: increasing the price of imports (tariffs)‚ restricting the quantity of imports (quota) and lowering the price for domestic products (subsidy). It is a politically motivated policy‚ used by nations‚ to give a competitive advantage to the domestic industries over foreign industries. In simple words‚ it is a barrier to free trade. Protectionism has always

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    Protectionism

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    Trade protectionism Trade protection is the deliberate attempt to limit imports or promote exports by putting up barriers to trade. Despite the arguments in favour of free trade and increasing trade openness‚ protectionism is still widely practiced. The main arguments for protection are: Protect sunrise industries: Barriers to trade can be used to protect sunrise industries‚ also known as infant industries‚ such as those involving new technologies. This gives new firms the chance to develop‚ grow

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    Examples of Protectionism

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    Examples of Protectionism Argentina Argentina tops the list of countries with more commercial restrictions‚ both for imports and exports‚ and also for foreign currency controls. According to the report‚ Argentina applied 168 measures since 2009 to restrict and control the trade. The EU has said the country’s import licensing rules were unjustified and "aimed at advancing the Argentinean Government’s stated policies of re‑industrialization‚ import substitution and elimination of trade balance

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    question 1, protectionism

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    QUESTION 1 Protectionism is defined as the economic policy of restraining trade between states through methods such as tariffs on imported goods‚ restrictive quotas‚ and a variety of other government regulations designed to allow fair competition between imports and goods and services produced domestically. Those economic policies get their success back during unfavorable economic times – recessions or crisis. The most evident application of protectionism in order to respond a difficult

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    Free trade and protectionism Free trade: It takes place between countries when there are no barriers to trade put in place by governments or international organization. Good and services are allowed to move freely between countries Pros Cons Protecting domestic employment Protecting the economy from low cost labour Protecting an infant (sunrise) industry To avoid the risks of over-specialization Strategic reasons To prevent dumping To protect product standards To raise government revenues

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    his trade policy does not constitute an overall breaking of the mould in US trade politics‚ rather it is merely a sustenance of the US executive succumbing to longstanding protectionist pressures domestically. In consideration of not only how protectionism is not a new development within US trade politics but also that Obama has been bound by the same domestic pressures as his predecessors‚ it may be considered surprising that Obama has been ascribed with a protectionist label that his predecessors

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    Senile industry argument: If industries are declining and inefficient they may require large investment to make them efficient again. Protection for these industries would act as an incentive to for firms to invest and reinvent themselves. However protectionism could also be an excuse for protecting inefficient firms. 2) To diversify the economy: many developing countries rely in producing primary products in which they currently have a comparative advantage. However relying on agricultural products

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    Question 1 Why do you think calls for protectionism are greater during sharp economic contractions than boom periods? Answer: Calls from business for protection could be based on the fact that in times of sharp economic contractions there is generally a reduced demand for goods and services within the local market. This results in foreign companies and their goods and services competing with domestic companies and their goods and services in a local market characterized by a reduction in demand

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    restrictions on the movement of goods and services between countries. It will lead to the most efficient allocation of world resources and higher standards of living for all participating countries. Yet countries in the world see a need for protection. Protectionism is a policy of protecting home industries from foreign competition by the imposition of trade barriers on foreign goods and services. This is because individual governments in the countries are more concerned with achieving national objectives

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    Course Name International Economics Course Code FIN: 2210 Submitted To: Shaikh Masrick Hasan Lecturer Department of Finance Jagannath University Submitted By: Sohel Rana On behalf of Group-06 2nd Year 2nd Semester‚ 6th Batch Department of Finance

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