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How can protectionist moves create conflict within a country?

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Final answer:

Protectionist measures like tariffs and quotas can cause conflict within a country by creating winners and losers among consumers and producers, leading to higher consumer prices and possibly triggering retaliatory measures from other countries.

Step-by-step explanation:

Protectionist moves, such as the implementation of tariffs, quotas, and embargoes, can create internal conflict within a country by creating divergent interests among different groups. For instance, while domestic producers may benefit from such policies due to reduced competition from foreign producers, consumers must contend with higher prices for products that could have been imported more cheaply. This divide forms a conflict between consumers and protected industries. Furthermore, retaliation from foreign countries in response to protectionist policies can hurt domestic exporters, resulting in a conflict between exporting sectors and industries receiving protection.

Protectionist policies can also impact the overall economy by forfeiting the benefits of international trade, such as comparative advantage, specialized learning, and economies of scale. Government interventions in trade can lead to inefficiencies, and while they might protect certain jobs, they can also result in higher costs for consumers and other sectors of the economy.

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