Protectionism and Free Trade

PROTECTIONISM

The restriction of imports into a country by government measures

REASONS FOR PROTECTIONISM (Advantages)

• Protects UK businesses from extra competition
• Helps new UK businesses to develop before they face competition
• Helps protect UK jobs
• Prevents foreign countries ‘dumping’ lots of cheap imports into the UK
• Prevents imports of harmful or desirable goods

Examples of restrictions are taxing imported goods (they increase the price to the customer and make them less attractive) and quotas (limiting the number…