Question

Name and define three policy tools for enacting

protectionism.

Short answer

-Tariff barriers

-Non-tariff barriers

-Import quota

Step-by-step solution

Step 1. Meaning

Protectionism is a trade policy that allowed the government of the country to impose tariffs on foreign goods and services to protect or boost the domestic production of goods and services.

Step 2. Tariff barriers

Tariff barriersare taxes that are imposed on foreign goods and services by a country, due to more tax increased customer expenditure,

For example- perfume imported from Paris has to pay 12% extra tariff rates, so the consumer has to pay more for perfume, though perfume to lose many consumers.

Step 3. Non-tarriff barriers

The non-tariff method makes importing more difficult and expensive, including safety standards, regulations, and the rule of origin

Step 4. Import quotas

When we put limits on the imported products numerically known as import quota.

For example- for keeping the balance between domestic production and import, the agreement was scared from 1974 to 2004( International multi-fiber agreement).

The market was divided into two (for agreement)

- Imported products

-Domestic players

the main part was to import without impacting domestic players.