Protectionism

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Protectionism is the economic policy of protecting a nation's manufacturing base from the effects of foreign competition by means of very high tariffs on imported goods, restrictive quotas, or other means of reducing importation. This contrasts with the free trade model, in which foreign products are exempted from tariffs, allowing foreign producers to access a domestic market without the tax burden incurred by domestic manufacturers.

Related Topics:
Economic - Competition - Tariffs - Quotas - Free trade

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Protectionism has frequently been associated with mercantilism, the belief that it is beneficial to maintain a positive trade balance; and import substitution.

Related Topics:
Mercantilism - Trade balance - Import substitution

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Protectionism comes in two variants, depending on whether the tariff is intended to be collected (traditional protectionism) or not (modern protectionism).

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