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Miss. Allison J Tutkowski
Charles B. Whitnall High School
Sri Lanka
Consequences of Economic Protectionism
The economy is bad. End of story or just the beginning? There is a term called economic
protectionism, and that’s the basis of our story. After we understand the meaning and potential
benefits, our eyes will not only be opened, but be better focused on the true consequences.
Economic protectionism is a policy of restraining from trade between states and countries. It
can be done through methods such as placing tariffs on imported goods, restrictive quotas, and other
government ruled procedures to kindly reject imports. The main goal that protectionism is grabbing for
is to protect native markets and companies from foreign take-over. Benefits are mainly keeping the
country’s wealth, within the country. Advantages protectionists (people who support protectionism)
argue, are that domestic tax policies can benefit foreign goods. Protectionist claim that “allowing
foreign goods to enter domestic markets without being subject to tariffs or other forms of taxation,
leads to a situation where domestic goods are at a disadvantage”. The disadvantages to domestic goods
would include higher prices, therefore less sales, and eventually struggle for the native products to
survive. Another point to be made for economic protectionism is the fact that government already
interferes with other laws such as; “Child Labor Laws, Environmental Protection Laws, Product Safety
Laws, Anti-Trust Laws, Occupational Safety Laws, Equal Opportunity Laws, Intellectual Property Laws,
Minimum Wage Laws”. Many believe that these laws already put companies at disadvantages when
competing, so why not also interfere with the trading laws? Similar to the additional benefits of the
previous laws (stated above) concerning businesses, the new laws would protect social good as well.
Overall protectionists believe that incorporating economic protectionism will encourage domestic
industries to grow and become self sufficient. The individual country will benefit immensely. Even if
economic protectionism may seem like a good idea the consequences are profuse.
As many support high government watch over trade, the concept of free trade is often a better
option. It’s believed that gains from free trade outweigh the loses. Comparative advantage is a term
used to refer to a party…more so the ability of that party to produce a particular good at a lower more
advantageous price than another party. Generally the promotion of free trade is related to comparative
advantage scheme. Free trade is a system policy allowing traders to act without the annoying wrath of
the government officials. This mode of trade is extremely beneficial for starting countries. Instead of
only looking for profit, the free trade allows for true supply and demand status, well also providing some
true competition on the job markets. It provides jobs… Although the title pirate may seem gruesome
and barbaric, they are simply people of free trade. The oblique advantages and prose to theory’s of
piratism are immense and quite obvious…they simply do not need further explaining. At one point in
time protectionism was accused of causing war. The reasons for this were sketchy, but it’s believed that
when people became annoyed at the government ruling their lives, they rebelled. And it just so
happens that it was the protectionism that pushed them over the top. Let’s not have something as
drastic and mordant as that happen again. Overall the benefits of free trade rule out protectionism.
Regardless of the load of judgments, undoubtedly economic protectionism is potentially calamitous.
In the economy today we may be seeing more protectionism and this is mainly due to the crises
of 2009. Governments around the world, including the secluded country of Sri Lanka, are scrambling to
find a way to save their economies. Sri Lanka especially has been suffering from the end of a brutal
long-lasting civil war. They have committed to restraining from economic protectionism and promoting
free trade, hoping that this will better heal their country. Although economic protectionism may seem
like a simple way to harvest benefits, the overall consequences of it prove to be ineffective.