What are the effects of protectionism?

Other forms of protectionism can be less obvious, such as domestic subsidies to give industries unfair advantages. The main effect of protectionism is a decline in trade, higher prices for some goods, and a form of subsidy for protected industries. Some jobs in these industries may be saved, but jobs in other industries are likely to be lost.

What is protectionism & how does it work?

Protectionism is a government-imposed trade policy by which countries attempt to protect their industries and workers from foreign competition. Protectionism is commonly implemented by the imposition of tariffs, quotas on import and exports, product standard, and government subsidies.

What is the value of protectionism?

The value of protectionism is a subject of debate among economists and policymakers. Tariffs, import quotas, product standards, and subsidies are some of the primary policy tools a government can use in enacting protectionist policies.