Protectionism of Trade Business:

Trade protectionism is basically a rules and regulations of a government to maintain or to make a

limitation on the import of goods and services to protect/promote domestic product and also to
create new jobs. Basically Protectionism is the economic policy of government to save our
domestic product and industry by imposing tariffs on imported goods, restrictive quotas, and also
variety of other government regulations to

prevent foreign product not to

take -over of

domestic markets Here the government gives an instructions and objectives on which product
can be imported in the country and which products cannot be imported from the other part of the
nations. Domestic products mean the products, which is made in own industries. These are the
industries face tremendous pressure to maintain competitive market prices of their products with
foreign goods. That is why government uses trade protectionism to develop the domestic
products and also helps the domestic product industries to compete in global market.

Protectionism of Bangladeshi Trade Business:

Bangladesh is a developing country and it is also known as a third world country. Bangladesh
is been participating in the global trade business for a long time. After the independence in 1971,
Bangladesh gets involved in the global business. That means Bangladesh have the capability of
import and exporting goods to the other nation of the world. In the field of export and import,
Bangladesh had been dealing with various nations on export and importing goods and services
for a long time. After a long research and analysis on Bangladesh export processing zone and
other export import foreign dealer, we had figured out that the Trade Protectionism will increase
the countrys job facilities and also save the companies. It also raises our economic condition. As
Bangladesh is a poor country, the trade protectionism is very much important to us. The
government in Bangladesh cannot provide enough foods and other resources to the people. That
is why; the country has to import food to the other country every year. For this reason our
economy condition is in a very bad shape. Even we have to owe money from the other nations to
fulfill our crisis. Because our industry is not developed for the lack of technology and skilled
manpower, we also cannot decrease our countrys debts. That is why, day by day the countrys
importing product rate is been increasing in a massive way. If the trade protectionism can be

applied in our export import system, then this import rate will be decrease soon. If the trade
protectionism theory is applied by the government, our domestic products may survive and also
later on they will have the capability to compete in the global market. If the government raises
the imported product expense or tariff then the countrys people will be dependent on the
domestic products and later on people will lose interest on the foreign products. This process is
known as charging a tariff. The main role of protectionism is to increase the export rate rather
than the import rate. In this process, the countrys own industries will be developed because if
the foreign products are being reduced from the country, the domestic products are on the top
priority. That is why; the home industries will take a lot initiative to expand the domestic product
and services. For fulfilling the need of the customer, these industries will create newer and newer
forms of products and services with advanced technology and skilled manpower. The home
industries will increase rapidly in the country and so the employment facilities will be expanded.
The people will be very skilled because of the industrial advancement and taking initiative of
making newer and newer forms of products and services. In this way we can fulfill our countrys
needs and also can export goods and services to the other nations to raise our economic
condition. Bangladeshs debt to the other country is very high, so to reduce such condition the
trade protectionism is the best way to solve such kind of situation. Bangladesh needs to increase
the export process with the products and goods on which the country is good at producing. For
example Bangladesh is an agricultural country. That is why Bangladesh now gains a lot of profit
in exporting potatoes, onion and other agricultural products. In this way, we need to find out
more ways to increase the exporting system rather than importing. There is an example of our
soap industry. Our country is very much developed in soap industry. Though we are very good
and advance in this field, still the foreign countries soaps are imported in our country which is
totaling unnecessary. These industries are succeeded to fulfill the need of the people. But still,
for some reason, foreign soaps are imported in our country.

Trade Dimention:
Bangladesh launched a deep and wide-ranging trade reform strategy in the early 1990s. This
included substantial reduction and rationalization of tariffs, removal of quantitative restrictions,
move from multiple to a unified exchange rate system, convertible current account and an overall
outward orientation of trade policy regime. As a result, the countrys trade integration, measured
by the trade-GDP ratio, rose from 18% in 1990 to 43% in 2008.
Despite apprehensions that Bangladesh might lose out to exporters from China and India
following the phase-out of the MFA quotas, its share in global apparel and textile exports has
remained stable and export volumes have continued their robust growth. The countrys main
markets are the EU and the United States and its imports are dominated in general by machinery
and textiles, with China and India being the most important sources of imports. Bangladesh also
has substantial unrecorded trade with its neighbor India. Labor exports are also important, with
remittance inflows at about 9% of GDP.
The role of private sector driven export growth and diversification has been emphasized in
Bangladeshs PRSP, making export-led growth a key thrust of its poverty reduction and growth
strategies.

Advantage of Trade Protectionism:

Trade protectionism enables countries to specialize in the production of those
commodities in which they have a comparative advancement.
Trade protectionism improves the efficiency of resource allocation.
Increased competition promotes innovative production methods
The increased competition ensures goods and services, as well as inputs, is supplied at the
lowest prices.
The use of new technology, marketing and distribution methods.

 employment facility will increase in the country

Countrys manpower will be skilled.
Productivity grows when countries produce goods and services.
Inflation does not hamper economic growth.
Firms stay competitively challenged.
Trade protectionism can protect the development of their industry.
Reduce the unemployment rate.
It protects infant industries; restrict damping of useful commodities, source of foreign
currency.
Trade Protectionism protect the importation of harmful commodities

Disadvantage of Trade Protectionism:

The customers are not able to get the competitive prices. Instead they would have to buy
what the home industry is producing.
Quality of products suffers as there is no competition.
Home industry gets extremely non-competitive.
Trade protectionism is a great barrier for companies that are willing to expand to other
countries and are stopped due to these barriers.
Higher raw material costs for domestic firms
Threats of retaliation in the form of Trade Embargoes or other Tariffs.
home countrys technology may be stole by the other nations

 Domestic workers may lose their jobs for increased imports pr shifts.
Workers in high wage countries may be forced to accept pay cuts.
Domestic countries may lose their competitive advantage.
Limits the market.
The consumers will be denied an easy access to high quality products.
Threats of retaliation in the form of Trade Embargoes or other Tariffs.
Higher raw material costs for domestic firms
Smuggling and other unfair means tend to get boost as people like smuggled better
quality products
Trade protectionism is a great barrier for companies that are willing to expand to other
countries and are stopped due to these barriers.
Quality of products suffers as there is no competition.

Conclusion:
Here what the government can do is to increase the tariff or the tax on this product and utilize the
tariff by giving a package loan to other domestic industries. By doing is on every sector of
business our country will be self established if the government use the theory of trade
protectionism. Because in this system, it says to be self dependent of what the country is good in
producing goods and services and increase the currency rate of a country by exporting the
products and goods all over the world. So in our opinion, to develop the countrys economy and
to expand the global business, we must say that trade protectionism is the only way to save the
Bangladeshi jobs, the home companies and to decrease the debts in our country

Reference:
http://www.blurtit.com/q876266.html
http://seekingalpha.com/article/161564-trade-protectionism-benefits-no-one
http://useconomy.about.com/od/glossary/g/Trade-Protectionism.htm
http://online.wsj.com/news/articles/SB1000142412788732476700457849086173669547
http://archive.thedailystar.net/newDesign/news-details.php?nid=82343
http://www.oecd.org/trade/protectionism-thecaseagainst.htm