Limit their protectionism policies.
Further Explanation:
Protectionism is a policy of protection of domestic industries against the foreign competition by various things like tariffs, subsidies. It raises the price of the imported article making it more expensive than the domestic products. The protective tariffs stimulate industries in the country beset by depression. Every industry fosters Self-Sufficiency.
Many countries implement protectionist policies whereas economist agrees that the world economy will be benefited only through free trade. The chief measures of protection policies are levied by the government.
Import Quotas is another form and means of protectionism. These Quotas set the absolute limit to the number of goods being imported to the country and is more effective than tariff policy. The Europeans always favoured protectionist policies in an attempt of increasing free trade. They built their economies at the expense of other nations.
This is known as Mercantilism. The great depression in 1930 saw the record level of unemployment. World trade falls drastically.
The United States has a long history of protectionism with the tariffs reaching to high points in the 1820s. Average tariffs on the goods are raised to 20%. WTO negotiations have reduced customs tariffs.
Learn more:
1. In which system of government would states function independently of each other?
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2. In McCulloch v. Maryland, what did the state of Maryland argue?
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Answer Details:
Grade: High School
Subject: Social Science
Chapter: Protectionism
Keywords: Domestic industries, foreign competition, tariffs, protectionist policies, import quotas, 20%, customs tariffs.
