Protectionism Concept
Protectionism is ca concept of
protecting the local industry from the negative impact of the imports.
1.
Import Duties
First tool of protectionism is
import duties. Domestic country imposes high import duties on the import to
control or reduce the imports.
2.
Import Limit or Qouta
Second tool of protectionism is
import quota or limit, under this arrangement; every country is allotted or
allocated a limit of import. It means that such country can import the goods to
such prescribed limit.
3.
Quality Standard
Third tool of protectionism may be
used a strict or tight quality policy. Many develop countries use this measure
or tool very effectively.
4.
Local Industry Subsidies
Fourth tool of protectionism is
providing subsidies to the local industry.
5.
Extensive Documentation
Fifth tools of protectionism are
extensive or detailed documentation for the imports. Many formalities may be
put to reduce or control imports.
