Question

As a result of the many rounds of trade negotiations, both tariff and nontariff barriers have been significantly reduced on a worldwide basis. However, given recent shifts in productive assets and employment from many industrialized countries to emerging economies such as India and China, cries for protectionist measures can be heard from many quarters. Argue the possibility that governments in industrialized countries will once again implement some form of protectionist measures in order to protect their markets and industries. Do you expect that such measures would be in the form of tariffs or nontariff barriers?

Answer 1

When there are talks of protectionist it will always lead to tariffs or nontariff barriers no matter which country it is. There are possibilities that developed and industrialized countries will once again implement few of the protectionist measures in highly vulnerable industries. and the most common protectionist measures are always in form of barriers in which few are by imposing duties and tariffs while other are non-tariff barriers such as licensing.

In recent times we have listened a lot of protectionist talks from China which may lead the world to a trade war and for that war weapons are trade barriers.