Question

How could trade protectionism be improved without reverting to free trade?

Answer 1

Trade protectionism refers to a government policy that limits unfair competition from international industries. These can be improved by providing subsidies to the local industries; and these arise in the form of tax credits or even direct payments. Tariffs can be imposed on goods imported to a country from abroad. Similarly by imposing quota i.e. fixing an amount of products can be imported to a country from abroad during a certain time period. Nontariff barriers such as anti-dumping measures, administrative procedures, health and safety requirements, and custom entry fees can also be helpful in improving the trade protectionism without reverting to free trade. However in the short run these can works but are destructive in the longer term.