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People also ask
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What are the justifications of protectionism?
Proponents of protectionism argue that the policies can help to create domestic jobs, increase gross domestic product (GDP), and make a domestic economy more competitive globally.
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What are the arguments in favor of protectionism in economics?
Reasons for Protectionism An economy usually adopts protectionist policies to encourage domestic investment in a specific industry. For instance, tariffs on the foreign import of shoes would encourage domestic producers to invest more resources in shoe production.
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Can protectionism be justified?
Proponents of protectionism argue that the policies can help to create domestic jobs, increase gross domestic product (GDP), and make a domestic economy more competitive globally.
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Is protectionism ever justified?
This approach is known as protectionism. Many economists agree that some restrictions on trade are desirable, but that we should be careful, as such restrictions can make us poorer overall. For example, limits on agricultural imports may be good for British farmers, but they also increase food prices.
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Do economists like protectionism?
There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth.
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What are the 5 arguments for protectionism?
Five common arguments in support of protectionism are: National security. ... Counteracting dumping and foreign subsidies. ... The infant industry argument. ... Protecting domestic jobs. ... Improving the trade deficit.
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Under what conditions do you think protectionism may be justified?
A government may justify protectionist policies for one of the following reasons, which are outlined in this video: Protect domestic jobs. Level the playing field. Raise additional revenue for the domestic government.
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