{"id":34625,"date":"2018-10-31T12:33:46","date_gmt":"2018-10-31T07:03:46","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34625"},"modified":"2018-10-31T12:33:46","modified_gmt":"2018-10-31T07:03:46","slug":"world-bank-cautions-against-protectionism","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/world-bank-cautions-against-protectionism\/","title":{"rendered":"World Bank cautions against protectionism:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/world-bank-cautions-against-protectionism\/article19849030.ece\"><span style=\"font-weight: 400;\">World Bank cautions against protectionism<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The World Bank has cautioned that a rise in protectionism and policy uncertainty could derail the fragile recovery of global economy.<\/span><\/li>\n<\/ul>\n<p><b>What is Protectionism?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Protectionism refers to government actions and policies that restrict or restrain international trade<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Protectionism is often done with the intent of protecting local businesses and jobs from foreign competition. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The primary objective of protectionism is to make local businesses or industries more competitive by increasing the price or restricting the quantity of imports entering the country.<\/span><\/li>\n<\/ul>\n<p><b>What are the ways through which Protectionism is implemented?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Protectionist policies can be implemented in four ways:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Taxation with Tariffs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Import Quotas<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Product Standards<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Government Subsidies<\/span><\/li>\n<\/ul>\n<p><b> What are the advantages of Protectionism?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Protectionism temporarily <\/span><span style=\"font-weight: 400;\">creates jobs for domestic workers. The protection of tariffs, quotas or subsidies allows domestic companies to hire locally.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If a country is trying to grow strong in a new industry, tariffs will protect it from foreign competitors.<\/span><\/li>\n<\/ul>\n<p><b>What are the disadvantages of Protectionism?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Trade protectionism weakens the industry<\/span><span style=\"font-weight: 400;\"> in long-term.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Consumers in the domestic market may also have to pay a premium for a better-produced import or be denied the ability to acquire it at all.<\/span><\/li>\n<\/ul>\n<p><b>Weak investment<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">He expressed concern that risks such as a\u00a0rise in protectionism, policy uncertainty or possible financial market turbulence could derail this fragile recovery.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Forced displacement<\/span><\/li>\n<\/ul>\n<p><strong>Globalisation vs Protectionism<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Globalization means expanding the trade internationally and protectionism means protecting domestic industries from foreign competition.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Supporters of globalization<\/span><span style=\"font-weight: 400;\"> argue that it has the potential to make this world a better place to live in and solve some of the deep-seated problems like unemployment and poverty.<\/span><\/li>\n<li><b>Free trade<\/b><span style=\"font-weight: 400;\"> is supposed to reduce barriers such as tariffs, value-added taxes, subsidies, and other barriers between nations. This is not true. There are still many barriers to free trade. The Washington Post story says \u201cthe problem is that the big G20 countries added more than 1,200 restrictive export and import measures since 2008. The proponents say globalization represents free trade which promotes global economic growth; creates jobs, makes companies more competitive, and lowers prices for consumers.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Furthermore, the<\/span><b> sharing of technology <\/b><span style=\"font-weight: 400;\">with developing nations will help them progress. True for small countries but stealing our technologies and IP have become a big problem with our larger competitors like China.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In the case for protectionism, if a country is trying to grow strong in a new industry, <strong>t<\/strong><\/span><b>ariffs will protect it from foreign competitors. That gives the new industry\u2019s companies time to develop their own competitive advantages.<\/b><span style=\"font-weight: 400;\"> However, domestic industries and markets can only grow so much until they must embark on global trade, otherwise, they won\u2019t be able to meet growing supply and demand.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Protectionism does <\/span><b>temporarily create jobs for domestic workers. <\/b><span style=\"font-weight: 400;\">The protection of tariffs, quotas or subsidies allows domestic companies to hire locally, but again, if a company in a protectionist state wants to expand, they won\u2019t be able to.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>World Bank cautions against protectionism: The World Bank has cautioned that a rise in protectionism and policy uncertainty could derail the fragile recovery of global economy. What is Protectionism? Protectionism refers to government actions and policies that restrict or restrain international trade Protectionism is often done with the intent of protecting local businesses and jobs&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/world-bank-cautions-against-protectionism\/\">Continue reading <span class=\"screen-reader-text\">World Bank cautions against protectionism:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34625","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704629320},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34625"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34625\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}