What are the arguments in favor of protectionism? Which of them are recognized by economists?

What are the arguments in favor of protectionism? Which of them are recognized by economists?



Arguments forwarded by protectionists to maintain government restrictions on trade can be classified as follows: 


(1) protection of an infant industry, 


(2) protection of the home market, 


(3) need to keep money at home, 


(4) encouragement of capital accumulation, 


(5) maintenance of the standard of living and real wages, 


(6) conservation of natural resources, 


(7) industrialization of a low-wage nation, 


(8) maintenance of employment and reduction of unemployment, 


(9) national defense, 


(10) increase of business size, and 


(11) retaliation and bargaining. Economists in general recognize as valid only the arguments regarding infant industry, national defense, and industrialization of underdeveloped countries.



Learn More :

GLOBAL MARKETING

Learn More Multiple Choice Question :