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Why do some countries resort to protectionist policies instead of engaging in international trade?

Catharine Linge

Some countries choose to limit trade with other countries and to have their own products first.

Sometimes, they want to protect their economy and people from competition from other countries. They might think that if they let other countries sell goods in their own market, then their own companies might not be able to compete and could go bankrupt. They think that, as a result, their country would lose jobs and it would be bad for the economy.

However, let’s look at the downside. By limiting trade, they are missing out on the opportunity to access new markets and customers. This might hurt their economy in the long run.

Moreover, protectionist policies can lead to trade wars, where countries try to hurt each other with import taxes and restrictions. This could have negative effects on the global economy as well.

Therefore, it is important to think carefully about protectionist policies. While it is important to protect your own economy, it’s essential to find ways to do that without damaging the global economy altogether.