Economic Protectionism Research Paper

991 Words4 Pages
Running head: PROTECTIONISM ECONOMY 1 How National Economic Protectionism Helps National Economy Growth Yuhua Li Stony Brook University Abstract Key words: economic protectionism, economic growth, challenges, profit, free trade Introduction The idea of globalization has been widely adopted by the majority of states collaborating to deliver quality products at affordable prices. The wide campaign for open markets and increased relations is for the obvious reasons including specialization and increased productivity, the creation of quality commodities and innovation, and the identification of new markets is hence improving organizational sales. However,…show more content…
In many cases, whether protectionism or free trading has long been a question for the economy. Clearly, there can't be a correct answer applicable to all different situations. Further, the difference in growth an economic development between different states call for adoption of innovative ideas based on economic performance rather than the trending international policies and campaign for the adoption of free-market policies. As a result, protectionist fits well in a conservative environment in a move to establish economic stability, minimize the number of external factors affecting the local businesses, and limit competition exposed to infant industries. Protectionist economies enjoy improved chances of employment as there is a reduced transfer of labor out or into the country. Ultimately this leads to improved living standards, generation of income and improved socials status, and creation of wealth. A good example includes Chinese, South Korean, and Japanese industrialization that have achieved fast growth and partly because they protect their local industries and promote their growth. Finally, another assumption for the adoption of protectionist economies is that in a case where al competing economies have adopted…show more content…
In a case of agricultural production or mining, protectionist economies may enjoy a comparative advantage by establishing policies that prevent third parties from producing the same product. In a case of increased productivity in the infant and exclusively producing companies, other benefits may trickle to other industries in the form of raw material purchases, acquisition of new technology, and the creation of competent labor force for the economy (Ferrini, 2012). Evidently, the success of a protectionist economy highly depends on the interaction of the local industries, the government, and consumers in a move to promote the consumption of local commodities and promote the growth of infant industries. First, the government must introduce policies to protect and limit the number of international firms that have jurisdiction to produce or import certain commodities. Secondly, the local firm must embrace the market challenges and use government support to deliver quality goods at affordable prices. Finally, the local community must be willing to support the local industries by increased demand for local commodities at the prevailing
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