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Identify What Actions A Government Can Take To Protect Its Domestic Industries. Describe The Effects That These Actions Have On Domestic Consumers?

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Thomas Rooney Profile
Thomas Rooney answered
There are a number of factors when protecting the domestic industries. Firstly you should encourage growth and trade within the country to make a more increased turnover and return on investment (ROI) accordingly.

This means the more people that are encouraged to trade, import and export in their own country will lead to greater profits for the country. In essence, protectionism can be defined as the economic policy of restraining trade between states through methods on protecting a number of so called tariffs.

This will be related to a number of things including imported goods, restrictive quotas, and a variety of other government regulations designed to dishearten imports and prevent foreign takeover of domestic markets and companies.

This policy is in stark contrast to free trade between countries as can be seen in the early days of the EC or European Economic Community in the days of Mitterand and Thatcher.

This is where government barriers to trade and movement of capital are kept to a minimum and in the more recent years, it has become closely aligned with anti-globalization. After the global economic meltdown in the last two years, heads of the G20 pledged to desist from imposing any protective measures.

Yet 17 of these 20 countries were reported by the World Bank as having forced trade restrictive measures since this period. The World Bank also express that the majority of the world's major economies are resorting to protectionist measures with their particular countries as the global economic crisis continues.
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Identify What Actions A Government Can Take To Protect Its Domestic Industries. Describe The Effects That These Actions Have On Domestic Consumers?

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