Protectionist policies

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Written by:

Cynthia B


Date added:

December 6, 2013








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4 / 1044


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8525 times


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The concept of comparative advantage is not utilized, cheaper prices are not developed for consumers and inefficient and uncompetitive industries are allowed to continue to operate. Hence the protectionist policies of increased tariffs, subsidies, quotas and even embargoes impact negatively on both the domestic and global economy...
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The resources of the domestic economy are not being utilized as the resources in the inefficient industries could be better utilized in efficient competitive industries which then can export products overseas, increasing GDP and domestic employment. Singapore for example has implemented economic policy involving very low tariff levels, which has led to the island nation forming internationally competitive industries in refining and finance...
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