Economic protectionism

Definition

Economic protectionism is an economic policy aimed at shielding a country's domestic industries from foreign competition by imposing tariffs, quotas, and other trade barriers. This approach seeks to boost local businesses and preserve jobs, often leading to isolation from global markets, which is particularly relevant in understanding the Sakoku policy.

5 Must Know Facts For Your Next Test

1. The Sakoku policy, enforced in Japan from the early 17th century until the mid-19th century, was a form of economic protectionism aimed at controlling foreign influence and trade.
2. Under Sakoku, Japan limited international trade to specific ports and allowed only Dutch and Chinese traders to engage with Japanese merchants, effectively isolating the country economically.
3. This policy was rooted in the belief that foreign ideas and influences could destabilize Japanese society and undermine the power of the ruling Tokugawa shogunate.
4. Sakoku helped Japan develop a unique domestic economy that was largely self-sufficient, with agriculture and traditional crafts flourishing during this period of isolation.
5. The end of Sakoku in the 1850s, prompted by U.S. Commodore Matthew Perry's expedition, marked a shift from protectionism to increased foreign trade and interaction with the global economy.

Review Questions

• How did economic protectionism manifest in Japan's Sakoku policy during its period of isolation?
  • Economic protectionism in Japan's Sakoku policy was evident through strict limitations on foreign trade and interactions. The government implemented measures such as closing off borders to most foreign countries, only allowing trade with specific nations like the Dutch and Chinese. This strategy aimed to protect Japanese industries from external competition and maintain control over domestic affairs.
• Evaluate the long-term effects of economic protectionism under Sakoku on Japan's domestic economy and societal structure.
  • The long-term effects of economic protectionism under Sakoku significantly shaped Japan's domestic economy and societal structure. By limiting foreign influence, Japan developed a self-sufficient economy that focused on agriculture and artisanal crafts, fostering a unique cultural identity. However, this isolation also meant that when Japan eventually opened up to the world in the mid-19th century, it faced challenges in adapting to modern industrial practices and foreign competition.
• Critically analyze how Japan's experience with economic protectionism during the Sakoku era informs contemporary discussions on globalization and trade policy.
  • Japan's experience with economic protectionism during the Sakoku era offers valuable insights into contemporary debates on globalization and trade policy. The consequences of isolating an economy highlight both potential benefits, such as the preservation of local culture and industries, as well as significant drawbacks, including technological stagnation and vulnerability upon re-engagement with global markets. This historical context underscores the delicate balance countries must navigate when implementing protectionist measures while considering the inevitable interconnectedness of today's global economy.

Related terms

Tariffs: Taxes imposed on imported goods, making them more expensive and less competitive compared to local products.

Isolationism: A foreign policy stance that emphasizes a country's focus on its own interests and avoiding involvement in international affairs.

Mercantilism: An economic theory that promotes governmental regulation of a nation's economy to augment state power, often through protectionist policies.