According to Dictionary.com, trade protectionism can be summarized as the economic policy of restraining trade between states or countries to protect domestic industry against foreign competition. These restraints are done and exercised through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations. There are many advantages and disadvantages of trade protectionism.
One advantage of trade protectionism relies heavily upon tariffs. Tariffs will protect an industry from foreign competitors. When being introduced to a new industry, one may basically be viewed as a rookie and can be highly taken advantage of. However, with tariffs being placed on the imported goods, the company will leave room …show more content…
With this being said, trade protectionism will cease competition from competitors. So, without this presence of competition industries will fall behind the rest of the world. They will have no reason to innovate, because there is no need to if they have all the power. In addition, there will be no push for modernization of product reliability.
Another disadvantage of trade protectionism is it leads to smuggling goods. Smuggling across the borders is well known in the United States. However, if a country is trying to crack down on smuggling, good law enforcement is needed. Well, that is more money being spent, and if they’re not getting the job, we have smuggling being continued and money being wasted.
Slower economic growth is a downfall as well for trade protectionism. Protectionism limits economic growth by restricting the markets in which goods are available. Countries that restrict goods from other countries may eventually find its own product restricted by another country. So, this slows growth by making it harder for industries to export their …show more content…
I’m a big fan of supporting the home team, but I think we have to realize how much relying on other countries has helped us so far. Taking a look at some everyday goods such as shoes and clothes, most of all these items come from overseas. So, why put a stop to something so important and essential. Also, innovation is important, and a government should never feel comfortable enough to stop improving. There is always room for improvement, and the only way to do so is to see what ideas other countries are presenting. We can piggyback off their and see how we can use new ideas to help the United States develop. Last but not least, the last thing we need is global tensions. Compromising is key, so if we can avoid any type of war, I support allowing goods to be exchanged. In all, trade protectionism and its disadvantages stand out as more important to
One advantage of trade protectionism relies heavily upon tariffs. Tariffs will protect an industry from foreign competitors. When being introduced to a new industry, one may basically be viewed as a rookie and can be highly taken advantage of. However, with tariffs being placed on the imported goods, the company will leave room …show more content…
With this being said, trade protectionism will cease competition from competitors. So, without this presence of competition industries will fall behind the rest of the world. They will have no reason to innovate, because there is no need to if they have all the power. In addition, there will be no push for modernization of product reliability.
Another disadvantage of trade protectionism is it leads to smuggling goods. Smuggling across the borders is well known in the United States. However, if a country is trying to crack down on smuggling, good law enforcement is needed. Well, that is more money being spent, and if they’re not getting the job, we have smuggling being continued and money being wasted.
Slower economic growth is a downfall as well for trade protectionism. Protectionism limits economic growth by restricting the markets in which goods are available. Countries that restrict goods from other countries may eventually find its own product restricted by another country. So, this slows growth by making it harder for industries to export their …show more content…
I’m a big fan of supporting the home team, but I think we have to realize how much relying on other countries has helped us so far. Taking a look at some everyday goods such as shoes and clothes, most of all these items come from overseas. So, why put a stop to something so important and essential. Also, innovation is important, and a government should never feel comfortable enough to stop improving. There is always room for improvement, and the only way to do so is to see what ideas other countries are presenting. We can piggyback off their and see how we can use new ideas to help the United States develop. Last but not least, the last thing we need is global tensions. Compromising is key, so if we can avoid any type of war, I support allowing goods to be exchanged. In all, trade protectionism and its disadvantages stand out as more important to