Why May Protectionist Policies Increase Rather Than Decrease During a Period of Increasing Globalisation?

Why may protectionist policies increase rather than decrease during a period of increase globalisation? Some countries may decide to protect their domestic market during a period of increasing globalisation, especially if economy is in a fragile state at that moment. One way they could protect themselves from cheaper imported goods and services import restrictions. These roll in the hay be tariffs, for example a tax, or quotas, which limit the goods and services produces afield and sold domestically.Governments may decide to restrict imports for different reasons. For many countries, tariffs forget a significant source for government revenues and money from taxes could be use to develop the economy, to make the domestic market more competitive and as well to protect industries at moments of decline or the infant industries which be not enough mature nor large to be able to compete with planetary businesses.Governments may use import restrictions to protect populations wellnes s and safety, or they may even ban all imports of a peculiar(prenominal) good if it is seen as a threat for the consumers, for example Red shucks was banned in France due to its high caffeine content and around experts thought that it may be deadly in some situations. present moment restrictions protect domestic industries, having a positive progeny on employment, as decreasing imports and increasing domestic production also increases domestic employment.Fewer idle people would decrease poverty rates and would increase wealth of those who atomic number 18 in work. Lower unemployment would decrease the amount of money spent on benefits and government could use the money to spend elsewhere, for example on health, education, humans goods which would therefore increase welfare ever more. Quotas would protect local industries from irrelevant imports that may be sold at a set out cost in the domestic industry, as the foreign producers may engage in unfair trade practises, such as dumping imports at prices lower that the costs of production.Read also Analyze the Ways in Which British Imperial PoliciesThese protectionist policies are usually good for the domestic economy, however for the consumers they are definitely not. Consumers have to pay high prices for the imported goods. These restrictions reduce opposition and local businesses may increase their prices, while firms result benefit from higher profits, consumers will suffer from loss of welfare, due to higher prices and restricted consumer choice.Firms will no longer have incentives to become more productively expeditious or to engage in research and development, it may encourage ineffectual allocation of resources. In reality is much more complicated, because if one artless will start to use protectionist policies, other countries are likely to resolve and start using them too. This would reduce international trade, having a negative effect on economy, employment and wages.