ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Common examples of protectionism, or tools that are used to implement a policy of protectionism include tariffs, quotas, and subsidies. All of these tools are meant to promote domestic companies by making foreign goods more expensive or scarce.

Detailed explanation-2: -Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism.

Detailed explanation-3: -Subsidies protect domestic industries by giving them direct payments to help them lower production costs. Trade barriers allow domestic industries to survive and compete with foreign producers that might be able to produce a good at a lower cost.

Detailed explanation-4: -Protectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations.