Protectionism
Definition. Protectionism refers to government policies that restrict international trade in order to shield domestic industries from foreign competition. Common instruments include tariffs, import quotas, subsidies to domestic producers, and administrative barriers that raise the cost or limit the volume of imports.
Governments may use protectionism to protect infant industries, safeguard jobs, or correct a trade deficit, but it generally reduces consumer choice, raises prices, and lowers overall economic efficiency.
This term belongs to Protectionism in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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