Definition of 'Protectionism'
Protectionism is a trade policy that restricts imports in order to protect domestic industries from foreign competition. This can be done through tariffs, quotas, or other measures.
Protectionism can have a number of negative consequences, including:
* Higher prices for consumers
* Reduced competition
* Less innovation
* Slower economic growth
There are a number of arguments in favor of protectionism, including:
* It can protect domestic jobs and industries from foreign competition.
* It can help to boost the economy by increasing demand for domestic goods and services.
* It can help to protect national security by ensuring that the country has access to essential goods and services.
Ultimately, the decision of whether or not to adopt protectionism is a complex one that must be made on a case-by-case basis. There are a number of factors to consider, including the potential benefits and costs of protectionism, as well as the impact on the country's overall economic well-being.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.