Trade Protectionism Is A Policy That Restricts The Imports...

Trade protectionism is a policy that restricts the imports of goods. The purpose of protectionism is to protect domestic industries from imports , the products coming into the country , increase exports ,products coming out the country ,and improve the countries economy . One of the most effective method of protectionism is the tariff. The tariff is a form of taxation on imports ,it increase the price of imports and is taken in the receiving country, for example if the goods coming by the sea , the tariff will be taken in the port on the country . Other forms of protectionist include five major non-tariff barriers (NTBs) such as quotas, subsidies , currency control , administrative regulation and voluntary export restrains. Quotas is a trade restriction that limits and regulate the number and value of imported goods in specific period of time. For example strawberries, during the winter season we don’t see as much of them in the market, however if you happen to find some t he value of the produce significantly increased. Another NTB is subsidies, the government provides money to new industries to become competitive in the global market. This include depreciation allowance , cash grants , and tax holidays (p.110) to help reduce cost and improve their position. For instance if a company is too small and is unable to to compete int the global market , the government would offer them financial aid for them to get back in business. Currency control is used to limitShow MoreRelatedInternational Trade Policy And Economic Development776 Words   |  4 PagesIntroduction In today s world economy, international trade policy plays an important role in national economic growth and economic development, it has become an important part of the international trading environment. 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