Final answer:
Globalization has led to increased competition from low-wage labor internationally, prompting nationalism and protectionism as a reaction to protect domestic jobs and industries. Protectionist policies raise the cost of imports, benefiting local producers but costing consumers more, and can potentially hinder the benefits of international trade.
Step-by-step explanation:
The rise of nationalism and protectionism in recent years is best explained by the reaction against the effects of globalization. Globalization has led to an international division of labor, which can cause domestic workers to feel economic pressure due to competition with low-wage labor pools from other countries. This, in turn, can lead to a rise in xenophobic sentiments and a desire to protect domestic industries. As globalization facilitates the spread of products, technology, and cultural influences across borders, some domestic producers and labor groups can become concerned about job losses and compete with cheaper foreign labor and products, leading to increased calls for protective measures such as tariffs, import quotas, and nontariff barriers.
Meanwhile, protectionism enforces higher prices on imports to encourage consumers to buy local products, which benefits domestic producers but disadvantages consumers with higher costs. Often, such policies are enacted in the belief that they will save jobs and bolster the economy, although they may also detract from the benefits that international trade can bring, such as economies of scale, specialized learning, and comparative advantage.