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

Why may protectionist policies increase earlier than decrease during a period of increasing globalisation? Some countries may decide to protect their internal market during a period of increasing globalisation, especially if economy is in a fragile carry at that moment. One way they could protect themselves from cheaper imported goods and services import restrictions. These can be tariffs, for case a tax, or quotas, which limit the goods and services produces abroad and exchange internalally.Governments may decide to restrict imports for diametrical reasons. For many countries, tariffs provide a significant source for government r pull downues and money from taxes could be used to smash the economy, to make the domestic market more competitive and also to protect industries at moments of decline or the infant industries which are not enough mature nor large to be able to compete with global businesses.Governments may use import restrictions to protect populations health and safety, or they may even ban all imports of a particular good if it is seen as a threat for the consumers, for example ruby-red Bull was banned in France delinquent to its high caffeine content and some experts thought that it may be deadly in some situations. Import restrictions protect domestic industries, having a positive exploit on drill, as decreasing imports and increasing domestic production also increases domestic employment.Fewer unemployed plenty would decrease poverty rates and would increase wealth of those who are in work. Lower unemployment would decrease the summate of money spent on benefits and government could use the money to spend elsewhere, for example on health, education, cosmos goods which would therefore increase welfare ever more. Quotas would protect topical anesthetic industries from foreign imports that may be sold at a lower price in the domestic industry, as the foreign producers may use up in unfair trade practises, such as dumping imports at prices lower that the costs of production. take aim 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 higher prices for the imported goods. These restrictions reduce competition and local businesses may increase their prices, while firms will 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 businesslike or to engage in research and development, it may encourage inefficient allocation of resources. In existence is much more complicated, because if one country will start to use protectionist policies, other countries are seeming to respond and start using them too. This would reduce international trade, having a negative effect on economy, employment and wages.