key term - Economic Nationalism

Definition

Economic nationalism is a policy approach that prioritizes domestic economic interests and the economic self-sufficiency of a nation over global economic integration and interdependence. It emphasizes protectionist measures to support domestic industries and limit foreign competition, with the goal of promoting national economic interests and security.

5 Must Know Facts For Your Next Test

1. Economic nationalism often involves the use of tariffs, quotas, and other trade barriers to protect domestic industries from foreign competition.
2. Proponents of economic nationalism believe that domestic industries and jobs should be prioritized over the benefits of free trade and global economic integration.
3. Economic nationalism can be a response to perceived threats to national economic security, such as the loss of domestic jobs or industries to foreign competition.
4. Historically, economic nationalism has been associated with the rise of fascist and nationalist political movements in the early 20th century.
5. Critics of economic nationalism argue that it can lead to retaliation from other countries, trade wars, and a reduction in overall economic efficiency and growth.

Review Questions

• Explain the key principles and goals of economic nationalism.
  • The key principles of economic nationalism are the prioritization of domestic economic interests and the promotion of national economic self-sufficiency over global economic integration and interdependence. The primary goals of economic nationalism are to protect domestic industries from foreign competition, promote domestic employment, and accumulate national wealth and power through a positive trade balance. This is often achieved through the use of protectionist measures such as tariffs, quotas, and subsidies to support domestic industries.
• Describe the historical context and political associations of economic nationalism.
  • Historically, economic nationalism has been associated with the rise of fascist and nationalist political movements in the early 20th century, such as in Germany and Italy. These movements sought to promote domestic economic interests and limit foreign influence, often through the use of protectionist policies. Economic nationalism can also be a response to perceived threats to national economic security, such as the loss of domestic jobs or industries to foreign competition. Critics argue that economic nationalism can lead to retaliation from other countries, trade wars, and a reduction in overall economic efficiency and growth.
• Evaluate the potential benefits and drawbacks of economic nationalism in the context of modern global economic integration.
  • Proponents of economic nationalism argue that it can protect domestic industries, promote domestic employment, and enhance national economic security. However, critics contend that economic nationalism can lead to retaliatory actions from other countries, triggering trade wars that ultimately harm economic growth and efficiency. In the context of modern global economic integration, where countries are increasingly interdependent, the potential drawbacks of economic nationalism may outweigh the perceived benefits. Policymakers must carefully balance the desire for domestic economic protection with the need to maintain productive international economic relationships and the free flow of goods, services, and capital.

Related terms

Protectionism:

Policies and practices that restrict or limit international trade to protect domestic industries from foreign competition, such as tariffs, quotas, and subsidies.

Mercantilism:

An economic philosophy that promotes a positive trade balance, where exports exceed imports, as a means of accumulating national wealth and power.

Autarky: The policy of national self-sufficiency, where a country aims to be economically independent and minimize its reliance on foreign trade and international markets.