Pros and Cons of Economic Protectionism

Running head PROS AND CONS OF ECONOMIC PROTECTIONISM 1
Pros and Cons of Economic Protectionism
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PROS AND CONS OF ECONOMIC PROTECTIONISM 2
Pros and Cons of Economic Protectionism
Introduction
Economic protectionism is the financial plan of limiting imports from foreign nations by
use of different techniques. These techniques include tariffs on imported commodities, import
quotas, as well as the variety of other regulations by the government. As recorded by McGee
(2014), economic protectionism often shields the businesses, producers, alongside workers of the
import-competing sectors within the nation from different foreign rivals. Therefore, this paper
examines different pros along with the cons of economic protectionism by giving examples.
Pros of Economic Protectionism
Economic protectionism always encourages local growth in employment opportunities.
For instance, within the U.S, labor outsourcing often takes place because the international wage
standard is still lower than that of domestic. Besides, economic protectionism protects the
operations of new companies in a region. Protectionism always helps in guarding new local firms
against multinational established rivalry in operations (13 Most Valid Protectionism Pros and
Cons, 2020). Additionally, economic protectionism helps in reducing financial gaps for workers,
companies, and countries. The free trade created by instances of protectionism often helps in
creating benefits for every individual. However, individuals with a large sum of money tend to
benefit most from such economic plans in a country (de Bromhead, 2017). Therefore, by
instituting economic protectionism on domestic services together with goods, it turns out to be
possible to decrease the presence of gaps in income as well as inequalities of resources that
always exist.
Economic protectionism helps in reducing cases of national deficits by creating a strong
economy that prefers the purchase and use of domestic goods over imported ones due to price