An economic policy against Globalization that aims to limit free trade by imposing:
- Tariffs
- Quotas
- Regulations In an effort to boost domestic industry.
Benefits
Economic
- Protects domestic industry from foreign competition
- Increases domestic employment
- Protection against Dumping
- Protects national security by preventing domestic technologies from entering foreign hands
- Gives developing industries enough time to be able to compete in the global market
Social
- Limits foreign influence and control
Geographical
- A country will not face the negative effects of being dependent on a few trading partners, and having their economy tied to theirs
Foreign Policy
- Is a tool to be used for renegotiating Trade Agreement
Environmental
- Government can effectively enforce environmental policies
Issues
Economic
- Stagnation of growth. No exporting
- Lack of importing due to lack of exports
Foreign Relations
- Trade restrictions lead to a trade war
Protectionist Tools
- Tariffs
- Subsidies
- Transportation costs
- Export Taxes
- ‘Voluntary’ Export Restraints
- Trade Sanctions
- Trade Quotas