Importance of Protectionism in Domestic Market

Protectionism in Trade

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK...............................................................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Protection is defined as the policies that applies by local industries against foreign
competition in the form of tariffs, imports and subsidies and there are other restrictions that
implemented on the imports in the country by foreign competitors. It is implemented by
government and organisations in the context of improving economic activity. These policies are
implemented by many countries to redress competition and to protect the localised economy.
Protectionism also promotes domestic trade and provide protection to the goods and services in
the market. It results in continuous growth in terms of promoting local goods in the market. By
restricting market actions it affects many industries but also benefits local industries(Gregori,
2021). he aim of this report is to highlight the importance of protectionism in the domestic
market.
TASK
Liberalization allows policies that make an economy open to do trade and investments in
the other parts of the world. Opening up the economies of countries to other global economies
enables countries to make competitive benefits in building many products. Liberalization freeing
trade regularly and that gives an advantage to the countries to grow in terms of international
trades. It eliminates trade barriers in merchandise and the main benefits of this would come in
the field of agricultural markets. Trade is always been shaped by the changing technology, rapid
development in the technology in the current times builds potential to transform international
trade. The most important impact that technology has made in the trade is that it reduces the
trade cost(Kerr, 2020). It composed the trades by enhancing the service component, fostering
trade of the good which are time sensitive products and reduces complexities with increment in
the length in global chain. It is concluding that expansion in the technology is likely to
considerate benefits to international cooperation which helps and ensures that digital trade grow
continuously for inclusive economic growth. Transport services and information plays an
important role in the growth of international trade. It provides connections within the economies