Protectionism as a Phenomenon

of the World Economy

Stanislav Ternovskiy

Advantages and disadvantages of protectionism in connection with free trade. .Structure 1. Protectionism and methods of its implementation. 3. 2. History of the protectionism phenomenon.

XXI century Renewing protectionism policies due to the crisis . XVII-XVIII centuries Protectionism as a part of the mercantilism theory 2. XVIII century Dominating role of protectionism 3. XIX century Initiating the free commerce doctrine 4.Historical Stages of the Protectionism Theory 1.

and a variety of other government regulations designed to allow “fair competition” between imports and domestically produced goods and services.What is protectionism?  Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods. . restrictive quotas.

Tariffs 2. Exchange rate manipulation . Direct subsidies 6. Import quotas 3. Anti-dumping legislation 5. Export subsidies 7. Administrative barriers 4.Protectionism Policies include the following items: 1.

Global Trade Alert Assess The amount of protectionism measures The amount of liberalizing measures .

Advantages of Protectionism Advantages of protectionism include: struggling with structural unemployment stimulating the economic growth in the short-term period protecting “young” industries .

Disadvantages of Protectionism Disadvantages of protectionism include: affecting the economies of the trading partners favorable conditions for the appearance of monopolies increasing prices for domestic consumers undermining the country's export by going up prices .

Major Benefits of Free Trade .

Conclusion  The only way of including protectionism in the economic comprehensive system of response is its constant replacement with stable development of the production sector and well-grounded commercial policy. . both domestically and abroad.

org .econlib.globaltradealert.References • • • http://en.