List of Pros and Cons of Protectionism
In today’s political climate, there is so much discussion and debate over how immigration should be properly handled. A lot of people assume that immigration is a bad thing, and as a result, they opt for isolationism or protectionism. In layman’s terms, both of these aforementioned words talk about an economic policy that promotes isolating one’s nation from others. This is critically important to keep in mind, because if you don’t do it, your country could very easily have to compete for resources in an environment that is far more difficult to deal with. Because of that fact, many teams opt for protectionism to not only protect their investments, but to ensure they can stabilize their economy from competitors.
List of Pros of Protectionism
1. Protects Economic Interests
One of the best reasons for protectionism is its ability to protect economic interests domestically. If you live in a country that’s very good at telecommunications, it’s a bad idea to outsource that sort of work to other countries. By doing so, you’re going to endanger the economy of your nation long-term. Instead, protectionism says you should protect your economy at all times, so stricter tariffs, harsher penalties for outsourcing, and a wide scale discouragement of immigration will promote domestic economic interests.
2. Promotes Nationalism
Protectionism is very good because it keeps your country together. Many people nationalism for being “xenophobic,” but in reality, you need it because it helps forge an identity for your country. One of the best ways of doing this is by using protectionism because, again, it will keep your economic interests secure and prevent your country’s identity from being disrupted or manipulated.
List of Cons of Protectionism
1. More Expensive Products
If you don’t outsource production, your consumers will have to pay more money for products. This is an unfortunate reality of the business, but it’s something you’ll have to consider with protectionism. Products made domestically are expensive because products, workers, and production equipment all cost more money to use, but again, if you commit to protectionism, you have to be prepared for this to happen.
2. Risks Diplomatic Alienation
Through protectionism, other countries may perceive your country as an unwilling negotiator. This is a big problem in diplomatic negotiations because people want to work with a country that’s willing to work with them. Should you adopt a policy of protectionism, be prepared to have trouble dealing with other nations.
Overall, consider these policies very carefully before you implement any of them.