Protectionism
Protectionism refers to the use of trade barriers by a country to shield its domestic industries from foreign competition. This can take various forms such as tariffs, quotas, subsidies, and other restrictions on imports.

Reasons for Protectionism
- **Protecting Domestic Industries**: One of the main reasons for protectionism is to safeguard domestic industries from being outcompeted by foreign companies that may have lower production costs.
- **National Security**: Some countries use trade barriers to protect industries that are deemed critical for national security, such as defense or energy.
- **Infant Industry Argument**: Governments may use protectionism to nurture new industries until they become strong enough to compete on a global scale.
- **Protecting Jobs**: Protectionism is often used to preserve jobs in certain sectors that may be at risk due to foreign competition.

Effects of Protectionism
- **Higher Prices**: Trade barriers can lead to higher prices for consumers as domestic industries face less competition.
- **Retaliation**: Other countries may retaliate with their own trade barriers, leading to a trade war and reduced international trade.
- **Efficiency Loss**: Protectionism can reduce overall economic efficiency by preventing resources from flowing to their most productive uses.
- **Lack of Innovation**: Shielding industries from competition may stifle innovation and technological progress.
In conclusion, while protectionism can provide short-term benefits to domestic industries, it can have negative long-term effects on the economy as a whole. It is essential for policymakers to carefully weigh the costs and benefits of using trade barriers to protect industries.

Protectionism is the use of trade barriers to protect a nation’s industries from foreign competition.