01. What is trade Protectionism?

Trade protectionism is basically a rules and regulations of a government to maintain or to make a limitation on the import of goods and services to protect/promote domestic product and also to create new jobs. Basically Protectionism is the economic policy of government to save our domestic product and industry by imposing tariffs on imported goods, restrictive quotas, and also variety of other government regulations to prevent foreign product not to take -over of domestic markets Here the government gives an instructions and objectives on which product can be imported in the country and which products cannot be imported from the other part of the nations. Domestic products mean the products, which is made in own industries. These are the industries face tremendous pressure to maintain competitive market prices of their products with foreign goods. That is why government uses trade protectionism to develop the domestic products and also helps the domestic product industries to compete in global market.

The supporters of trade protectionism believe that it allows domestic producers to survive and grow, producing more jobs. Because if the domestic product industries develop well and have the ability to compete in the global market, later on there will be more jobs and people will be employed and also be skilled. In the 17th and 19th century, business people used to follow an economic principle called mercantilism. The main theorem of mercantilism is to sell or to export goods and services to the other nations than bought or imported from it. In this method, the export should be in a higher rate than the import rate. To make this idea a success, governments started charging a tariff, which is a tax on imports, to make imported goods more expensive. In this process, the government makes the imported product expensive so