Final answer:
Protectionist trade policies are governmental actions that reduce or restrict international trade to protect domestic industries from foreign competition, using mechanisms like tariffs, import quotas, and nontariff barriers.
Step-by-step explanation:
“Protectionist” trade policies are governmental measures designed to reduce or block international trade in an effort to protect domestic industries and jobs from foreign competition. There are three main types of protectionist tools: tariffs, import quotas, and nontariff barriers. Tariffs are taxes imposed on imported goods, making them more expensive and less attractive to consumers compared to domestic products. Import quotas limit the amount of a particular good that can be imported, further safeguarding domestic markets. Lastly, nontariff barriers can include a variety of regulatory measures, such as safety requirements or bureaucratic hurdles, that make it more difficult for foreign goods to enter the market.
In history, countries have used protectionism to support their burgeoning industries until they could compete on an international level. Notably, Latin American countries adopted import substitution industrialization, which severely restricted imports to promote domestic production. In contrast, the United States has swung between protectionism and free trade, with the latter exemplified by the implementation of NAFTA in 1991, aiming to remove trade barriers and promote trade flow between the United States, Mexico, and Canada.