Protectionism as a Phenomenon

of the World Economy

Stanislav Ternovskiy
IE-09

Structure
1.
2.
3.

History of the protectionism

phenomenon.
Protectionism and methods of its
implementation.
Advantages and disadvantages
of protectionism in connection with free trade.

Historical Stages of the

Protectionism Theory
1. 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. XXI century

Renewing protectionism
policies due to the crisis

What is protectionism?

Protectionism is the economic policy of restraining

trade between states through methods such as tariffs
on imported goods, restrictive quotas, and a variety of
other government regulations designed to allow fair
competition between imports and domestically
produced goods and services.

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

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.

References
http://www.globaltradealert.org
http://en.wikipedia.org
http://www.econlib.org