The Crucible quotes

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Protectionism is an economic policy that does not allow free trade. Barriers in the flow of goods and services between countries are made leading to a decrease in the ratio of the price of domestic goods to the price of imported goods. The barriers used are tariffs, quotas, subsidies, voluntary export restraints, health and safety standards and environmental standards.

“Rising levels of protectionism in the US is cause for serious concern”; too much protectionism on a country could be very concerning to other countries especially if that country provides most of the raw materials for production on other countries. The main reasons for protectionism are to protect infant industries and less developed countries from the big multi-national companies, to overcome disequilibrium in the balance of trade, to protect employment domestically if the infant and local industries are disadvantaged by the economies of scale by multi-national companies, and to prevent the dumping of cheap products by other countries.

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In the case of the United States, one of their reasons too is for security purposes: “increasingly restrictive import requirements imposed by the United States for security purposes”. This action however was being questioned by the other countries and the World Trade Organization (WTO).

Trade barriers are necessary in some cases like putting embargo on Chinese milk products by different countries during the melanin scare for health purposes. However there are circumstances when it harms global trade as a whole. Big and important countries which are worlds leading importers and exporters could largely affect all other countries if they impose ...

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