Question

Why do nations practice protectionism? A.)to prevent loss of jobs and livelihoods B.)to improve relations with other nationsC.) to encourage growth of new industries tD.)o give consumers more choices E.)to retaliate against unfair trade practices

Answer 1

A) To prevent loss of jobs and livelihoods

C) To encourage the growth of new industries

E) To retaliate against unfair trade practices

Answer 2

The correct answers are A, C and E. Nations practice protectionism to prevent loss of jobs and livelihoods, to encourage growth of new industries and to retaliate against unfair trade practices.

Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas and a variety of other government regulations, thereby making such goods more expensive so that they are not profitable. Advocates claim that protectionist policies protect producers, companies and workers in the sector that compete with imports from foreign competitors in the country.