Question

Name and define three policy tools for enacting protectionism.

Short answer

Tariffs, import quotas and non tariff barriers are the most important policy tools for enacting protectionism.

Step-by-step solution

Step 1. Meaning of protectionism.

Policy implemented by government that restrict international trade to help domestic industries. Protectionist policies are usually implemented with the goal to improve economic activity within a domestic economy but can also be implemented for supply or quality concerns.

Step 2. Three policy tools for enacting protectionism.

a) Tariffs- It is a tax imposed by one country on the goods and services imported from another country.

b) Import quotas:- A quota is a government imposed trade restriction that limits the number or monetary value of goods that a country can import during a particular period.

c) Non-Tariff barriers:- It is a trade barriers that restrict import or export of goods or services through mechanism other than the simple imposition of tariffs.