Protectionist policies

Definition

Protectionist policies are economic strategies implemented by governments to shield domestic industries from foreign competition by imposing tariffs, quotas, and regulations. These measures aim to protect local jobs and businesses but can lead to international trade tensions.

Related terms

Tariffs: Taxes imposed on imported goods, making them more expensive than domestically produced goods.

Quotas: Limits set by a government on the quantity of a product that can be imported or exported within a certain period.

Trade War: A situation where countries retaliate against each other’s trade restrictions, leading to a cycle of increasing protectionist measures