Protectionist policies Protectionism

a variety of policies have been used achieve protectionist goals. these include:

protection of technologies, patents, technical , scientific knowledge
prevent foreign investors taking control of domestic firms
tariffs: typically, tariffs (or taxes) imposed on imported goods. tariff rates vary according type of goods imported. import tariffs increase cost importers, , increase price of imported goods in local markets, lowering quantity of goods imported, favour local producers. tariffs may imposed on exports, , in economy floating exchange rates, export tariffs have similar effects import tariffs. however, since export tariffs perceived hurting local industries, while import tariffs perceived helping local industries, export tariffs seldom implemented.
import quotas: reduce quantity , therefore increase market price of imported goods. economic effects of import quota similar of tariff, except tax revenue gain tariff instead distributed receive import licenses. economists suggest import licenses auctioned highest bidder, or import quotas replaced equivalent tariff.
administrative barriers: countries accused of using various administrative rules (e.g. regarding food safety, environmental standards, electrical safety, etc.) way introduce barriers imports.
anti-dumping legislation: dumping practice of firms selling export markets @ lower prices charged in domestic markets. supporters of anti-dumping laws argue prevent import of cheaper foreign goods cause local firms close down. however, in practice, anti-dumping laws used impose trade tariffs on foreign exporters.
direct subsidies: government subsidies (in form of lump-sum payments or cheap loans) given local firms cannot compete against imports. these subsidies purported protect local jobs, , local firms adjust world markets.
export subsidies: export subsidies used governments increase exports. export subsidies have opposite effect of export tariffs because exporters payment, percentage or proportion of value of exported. export subsidies increase amount of trade, , in country floating exchange rates, have effects similar import subsidies.
exchange rate control: government may intervene in foreign exchange market lower value of currency selling currency in foreign exchange market. doing raise cost of imports , lower cost of exports, leading improvement in trade balance. however, such policy effective in short run, lead higher inflation in country in long run, in turn raise real cost of exports, , reduce relative price of imports.
international patent systems: there argument viewing national patent systems cloak protectionist trade policies @ national level. 2 strands of argument exist: 1 when patents held 1 country form part of system of exploitable relative advantage in trade negotiations against another, , second adhering worldwide system of patents confers citizenship status despite de facto protectionism . peter drahos explains states realized patent systems used cloak protectionist strategies. there reputational advantages states seen sticking intellectual property systems. 1 attend various revisions of paris , berne conventions, participate in cosmopolitan moral dialogue need protect fruits of authorial labor , inventive genius...knowing while 1 s domestic intellectual property system handy protectionist weapon.
political campaigns advocating domestic consumption (e.g. buy american campaign in united states, seen extra-legal promotion of protectionism.)
preferential governmental spending, such buy american act, federal legislation called upon united states government prefer us-made products in purchases.

in modern trade arena many other initiatives besides tariffs have been called protectionist. example, commentators, such jagdish bhagwati, see developed countries efforts in imposing own labor or environmental standards protectionism. also, imposition of restrictive certification procedures on imports seen in light.

further, others point out free trade agreements have protectionist provisions such intellectual property, copyright, , patent restrictions benefit large corporations. these provisions restrict trade in music, movies, pharmaceuticals, software, , other manufactured items high cost producers quotas low cost producers set zero.