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Protection can increase employment opportunities in the country, for example, it costs $5 to make a piece of clothing in China and $8 to make a piece in the United States, so the order for clothes will be done in China, and the factory in the United States will have nothing to do, but it will go out of business, and the workers will lose their jobs.
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The direct reason is to protect domestic goods from competition from foreign goods in the domestic market, and at the same time to improve the competitiveness of domestic products in the international market. **The fundamental purpose of protectionism is to protect the domestic market and promote the development of domestic productive forces.
** Protectionism restricts imports, mainly by imposing high import tariffs to prevent the large import of foreign goods, and by adopting non-tariff measures such as import licensing system and import quota system to restrict the free import of foreign goods. In terms of exports, the competitiveness of domestic products in the international market will be enhanced through export subsidies and tax rebates.
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Protection is not supported.
Because ** protection will lead to a decrease in economic efficiency, an increase in unemployment, and a certain amount of unfairness, affecting international ** relations.
The efficient economic argument is that freedom can promote the efficient allocation of global resources, improve economic efficiency, reduce production costs, and increase volumes.
In addition, imports can also provide domestic consumers with a diversified and better selection of products, thereby improving the quality of life and welfare of consumers.
Ultimately, freedom contributes to economic growth and the process of globalization, creating interdependent relationships between countries that stabilize the economic and political environment and undermine them.
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The protection policy is a foreign trade policy that restricts entry and exit, that is, the state adopts various measures to restrict imports to protect its domestic market from competition from foreign goods, and gives preferential treatment and subsidies to its own export commodities to encourage its exports. From the historical investigation of the emergence and development of the international policy, foreign policy can be summarized into two types: freedom policy and protection policy.
The purpose of implementing the policy is mainly to protect the domestic market and promote the development of national socks or domestic productivity, which is mainly manifested in the form of export subsidies, import tariffs and import quotas.
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First, protection can harm a country's unprotected industrial sectors and consumers. With the rapid advancement of economic globalization, the world has formed a global unified market, in which various factors have been effectively allocated. If a country implements ** protection, it will directly or indirectly increase the cost of the importer, and the importer will pass on this part of the cost to its own consumers, thereby harming the interests of consumers.
In addition, protective measures enable producers of non-protected industries to provide mandatory subsidies to producers of protected industries, often resulting in income-shifting effects that outweigh the benefits and distort the distribution of benefits.
Second, protection can lead to a sharp decline in exporting countries and economies. If a country (usually a large country) takes the lead in imposing strict protection in a crisis, the amount of the main partner to whom it exports will plummet. The ensuing ripple effect is that the rapid contraction of the exporting country's economy will lead to the bankruptcy and closure of a large number of export-hungry enterprises, and the unemployment rate will rise sharply, thus dragging down the country's economy rapidly.
In particular, countries (regions) that implement export-oriented foreign trade development strategies will suffer a greater blow due to the impact of foreign trade dependence.
Thirdly, the protection of a country or group of countries in crisis could trigger global retaliatory measures that would worsen the world economy. Protectionist policies not only hinder the exports of other countries to the country and put other countries' industries at a disadvantage, but also affect the country's exports to other countries and put their own industries in trouble, because the protectionist policies of one country often trigger similar retaliatory policies in other countries. The implementation of this kind of retaliation has confined the industrial market in which each country has a comparative advantage to its own country, resulting in a further contraction of the world economy as a whole.
Fourth, protection will undermine the pattern of economic globalization that has been formed. Economic globalization is the inevitable result of the development of the world economy to a certain stage, and it is the interdependence of economic activities on a world scale, especially the formation of a world market, which enables capital to flow freely in the world beyond national boundaries and allocate resources on a global scale. Economic globalization has not only increased world output and consumer welfare, but also led to the adjustment of industrial structure worldwide.
The protection will inevitably interrupt the production value chain and the normal division of labor system formed by globalization, which will mean the overall regression of the world economy.
In short, protection will not only cause a sharp decline in the world's largest amount, intensified friction between countries, chaos in currency circulation and other problems, but also make countries around the world fall into a strange circle of deep distrust.
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