Protection- domestic industries from foreign competition. Types 1.tariff 2.non-tariff(quota) 3.

exchange control Arguments for and against protection 1.infant industry argument some small new industries are not able to compete with the foreign gaints .thus they require protection. Whereas once the industries get use to protection,they will ask for the continuosion in the long run.thus remain inefficient. 2.diversification argument the country diversifies in many products if they restrict their imports it leads to self reliance for the country,too much dependance either for exports or imports on very few countries may prove harmful for the country but the problem is the country will not have access to the cheaper commodities which are produced in other countries, so the domestic people have to pay higher price for the product. 3. the increase in the domestic in the domestic employment the retaliation problem that is the other countries may retaliated to the domestic policies and they will also impose higher tariff on the domestic imports.