Trade Protection

Protection on trade occurs when countries impose restrictions on imports into the economy. It can be defined as nation or a group of nations working in conjunction as a trade bloc, creating trade barriers with the specific goal of protecting its economy from the possible perils of international trading. In simple words, protectionism is a government action and policies which restricts or restrain international trade often intended to protect local businesses and jobs from foreign competition i.e. a policy that limits unfair competition from foreign industries. The objective of protectionism is to provide employment to people by protecting nation's vital economic interests such as key industries and commodities. According to critics, protectionism often hurts by slowing economic growth and pushing up prices. However, the supporters argue that protectionist policies provide competitive advantages and create jobs. The protection can be in the form of higher tariffs or