Final answer:
Protectionism is the practice of using tariffs, import quotas, and nontariff barriers to shield domestic industries from foreign competition, which can lead to higher prices for consumers but provide a competitive edge to domestic producers.
Step-by-step explanation:
The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs and quotas is known as protectionism. This economic strategy aims to protect domestic industries from international companies that may offer similar goods or services at lower prices. Protectionism regularly employs tools like tariffs, which are taxes on imported goods; import quotas, which limit the amount of a certain good that can be imported; and nontariff barriers, which are other regulatory measures that make importing goods more difficult or expensive.
These protectionist actions are designed to ensure that domestic industries are competitive by raising the cost of foreign goods, thereby encouraging consumers to buy domestically. However, while they may benefit certain domestic producers by providing a competitive edge, they also can result in higher prices for consumers and sometimes lead to trade disputes between countries.