Protectionism in the context of Plantations


Protectionism in the context of Plantations

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⭐ Core Definition: Protectionism

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. Proponents argue that protectionist policies shield the producers, businesses, and workers of the import-competing sector in the country from foreign competitors and raise government revenue. Opponents argue that protectionist policies reduce trade, and adversely affect consumers in general (by raising the cost of imported goods) as well as the producers and workers in export sectors, both in the country implementing protectionist policies and in the countries against which the protections are implemented.

Protectionism has been advocated mainly by parties that hold economic nationalist positions, while economically liberal political parties generally support free trade.

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Protectionism in the context of Tariff

A tariff or import tax is a duty imposed by a national government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods or raw materials and is paid by the exporter. Besides being a source of revenue, import duties can also be a form of regulation of foreign trade and policy that burden foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade.

Tariffs can be fixed (a constant sum per unit of imported goods or a percentage of the price) or variable (the amount varies according to the price). Tariffs on imports are designed to raise the price of imported goods to discourage consumption. The intention is for citizens to buy local products instead, which, according to supporters, would stimulate their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products. Tariffs are meant to reduce pressure from foreign competition and, according to supporters, would help reduce the trade deficit. They have historically been justified as a means to protect infant industries and to allow import substitution industrialisation (industrializing a nation by replacing imported goods with domestic production). Tariffs may also be used to rectify artificially low prices for certain imported goods, due to dumping, export subsidies or currency manipulation. The effect is to raise the price of the goods in the destination country.

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Protectionism in the context of Non-tariff barriers to trade

Non-tariff barriers to trade (NTBs; also called non-tariff measures, NTMs) are trade barriers that restrict imports or exports of goods or services through measures other than the imposition of tariffs. Such barriers are subject to controversy and debate, as they may comply with international rules on trade yet serve protectionist purposes. Sometimes, uniformly applied rules of trade may be more burdensome to some countries than others, e.g. for countries with developing economies.

The Southern African Development Community (SADC) defines a non-tariff barrier as "any obstacle to international trade that is not an import or export duty. They may take the form of import quotas, subsidies, customs delays, technical barriers, or other systems preventing or impeding trade". According to the World Trade Organization, non-tariff barriers to trade include import licensing, rules for valuation of goods at customs, pre-shipment inspections, rules of origin ('made in'), and trade prepared investment measures. A 2019 UNCTAD report concluded that trade costs associated with non-tariff measures were more than double those of traditional tariffs.

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Protectionism in the context of Common external tariff

A common external tariff (CET) must be introduced when a group of countries forms a customs union. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering. It is designed to end re-exportation; but it may also inhibit imports from countries outside the customs union and thereby diminish consumer choice and support protectionism of industries based within the customs union. The common external tariff is a mild form of economic union but may lead to further types of economic integration. In addition to having the same customs duties, the countries may have other common trade policies, such as having the same quotas, preferences or other non-tariff trade regulations apply to all goods entering the area, regardless of which country, within the area, they are entering.

The main goal of the Custom Unions is to limit external influence, liberalize intra-regional trade, promote economic development and diversification in industrialization in the Community.

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Protectionism in the context of Agricultural policy

Agricultural policy describes a set of laws relating to domestic agriculture and imports of foreign agricultural products. Governments usually implement agricultural policies with the goal of achieving a specific outcome in the domestic agricultural product markets. Well designed agricultural policies use predetermined goals, objectives and pathways set by an individual or government for the purpose of achieving a specified outcome, for the benefit of the individual(s), society and the nations' economy at large. The goals could include issues such as biosecurity, food security, rural poverty reduction or increasing economic value through cash crop or improved food distribution or food processing.

Agricultural policies take into consideration the primary (production), secondary (such as food processing, and distribution) and tertiary processes (such as consumption and supply in agricultural products and supplies). Outcomes can involve, for example, a guaranteed supply level, price stability, product quality, product selection, land use or employment. Governments can use tools like rural development practices, agricultural extension, economic protections, agricultural subsidies or price controls to change the dynamics of agricultural production, or improve the consumer impacts of the production.

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Protectionism in the context of Isolationism

Isolationism is a term used to refer to a political philosophy advocating a foreign policy that opposes involvement in the political affairs, and especially the wars, of other countries. Thus, isolationism fundamentally advocates neutrality and opposes entanglement in military alliances and mutual defense pacts. In its purest form, isolationism opposes all commitments to foreign countries, including treaties and trade agreements. In the political science lexicon, there is also the term of "non-interventionism", which is sometimes improperly used to replace the concept of "isolationism". "Non-interventionism" is commonly understood as "a foreign policy of political or military non-involvement in foreign relations or in other countries' internal affairs". "Isolationism" should be interpreted more broadly as "a foreign policy grand strategy of military and political non-interference in international affairs and in the internal affairs of sovereign states, associated with trade and economic protectionism and cultural and religious isolation, as well as with the inability to be in permanent military alliances, with the preservation, however, some opportunities to participate in temporary military alliances that meet the current interests of the state and in permanent international organizations of a non-military nature."

This contrasts with philosophies such as colonialism, expansionism, and liberal internationalism.

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Protectionism in the context of Conservatism in the United States

Conservatism in the United States is one of two major political ideologies in the United States, with the other being liberalism (more specifically, modern social liberalism). Traditional American conservatism is characterized by a belief in individualism, traditionalism, capitalism, republicanism, and limited federal governmental power in relation to U.S. states, although 21st century developments have shifted it towards right-wing populist themes.

American conservatives maintain support from the Christian right and its interpretation of Christian values and moral absolutism, while generally opposing abortion, euthanasia, and some LGBT rights. They tend to favor economic liberalism, and are generally pro-business and pro-capitalism, while more strongly opposing communism and labor unions than liberals and social democrats. Recent shifts have moved it towards national conservatism, protectionism, cultural conservatism, and a more realist foreign policy.

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Protectionism in the context of Whig Party (United States)

The Whig Party was a mid-19th century political party in the United States. Alongside the Democratic Party, it was one of two major parties from the late 1830s until the early 1850s and part of the Second Party System. As well as four Whig presidents (William Henry Harrison, John Tyler, Zachary Taylor, and Millard Fillmore), other prominent members included Henry Clay, Daniel Webster, Rufus Choate, William Seward, John J. Crittenden, and John Quincy Adams (whose presidency ended prior to the formation of the Whig Party). The Whig base of support was amongst entrepreneurs, professionals, Protestant Christians (particularly Evangelicals), the urban middle class, and nativists.

The party was hostile towards the ideology of "manifest destiny", territorial expansion into Texas and the Southwest, and the Mexican–American War. It disliked presidential power, as exhibited by Andrew Jackson and James K. Polk, and preferred congressional dominance in lawmaking. Members advocated modernization, meritocracy, the rule of law, protections against majority rule, and vigilance against executive tyranny. They favored an economic program known as the American System, which called for a protective tariff, federal subsidies for the construction of infrastructure, and support for a national bank. The party was active in both the Northern and Southern United States and did not take a firm stance on slavery, but Northern Whigs tended to be less supportive than their Democratic counterparts.

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Protectionism in the context of Barriers to trade

Trade barriers are government-induced restrictions on international trade. Most trade barriers work on the same principle: the imposition of some sort of cost (money, time, bureaucracy, quota) on trade that alters the price or availability of the traded products. Barriers take the form of tariffs (which impose a financial burden on imports) and non-tariff barriers to trade (which uses other overt and covert means to restrict imports and occasionally exports). Trade barriers have been criticized for their negative impacts on consumers and their unequal applications to developing countries.

The use of trade barriers has shifted throughout history. Protectionist policies were commonplace in the mercantilist era, but a combination of industrialization and liberalization led to a shift towards free trade in the mid-to-late 19th century. The interwar period led to a regression back to protectionism, but post-WWII there was a near-universal commitment to multilateralism and the creation of international organizations that led to lower tariffs and decreased protectionism. While organizations like the World Trade Organization still provide an avenue for trade negotiations, in recent times there has been a shift away from trade openness and towards plurilateral agreements and regionalism.

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Protectionism in the context of Import quota

An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. An import embargo or import ban is essentially a zero-level import quota. Quotas, like other trade restrictions, are typically used to benefit the producers of a good in that economy (protectionism).

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Protectionism in the context of Infant industry argument

The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale. The logic underpinning the argument is that trade protectionism is costly in the short run but leads to long-term benefits.

Infant industry protection is controversial as a policy recommendation. As with the other economic rationales for protectionism, it is often abused by rent seeking interests. In addition, countries that put up trade barriers to imports often face retaliatory barriers to their exports, potentially hurting the same industries that infant industry protection is intended to help. Even when infant industry protection is well-intentioned, it is difficult for governments to know which industries they should protect; infant industries may never grow up relative to adult foreign competitors.

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Protectionism in the context of Commercial policy

A commercial policy (also referred to as a trade policy or international trade policy) is a government's policy governing international trade. Commercial policy is an all encompassing term that is used to cover topics which involve international trade. Trade policy is often described in terms of a scale between the extremes of free trade (no restrictions on trade) on one side and protectionism (high restrictions to protect local producers) on the other. A common commercial policy can sometimes be agreed by treaty within a customs union, as with the European Union's common commercial policy and in Mercosur.A nation's commercial policy will include and take into account the policies adopted by that nation's government while negotiating international trade. There are several factors that can affect a nation's commercial policy, all of which can affect international trade policies.

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Protectionism in the context of Cultural diversity

Cultural diversity is the quality of diverse or different cultures, as opposed to monoculture. It has a variety of meanings in different contexts, sometimes applying to cultural products like art works in museums or entertainment available online, and sometimes applying to the variety of human cultures or traditions in a specific region, or in the world as a whole. It can also refer to the inclusion of different cultural perspectives in an organization or society.

Cultural diversity can be affected by political factors such as censorship or the protection of the rights of artists, and by economic factors such as free trade or protectionism in the market for cultural goods. Since the middle of the 20th century, there has been a concerted international effort to protect cultural diversity, involving the United Nations Educational, Scientific and Cultural Organization (UNESCO) and its member states. This involves action at international, national, and local levels. Cultural diversity can also be promoted by individual citizens in the ways they choose to express or experience culture.

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Protectionism in the context of Linguistic purism

Linguistic purism or linguistic protectionism is a concept with two common meanings: one with respect to foreign languages and the other with respect to the internal variants of a language (dialects).The first meaning is the historical trend of the users of a language desiring to conserve intact the language's lexical structure of word families, in opposition to foreign influence which are considered 'impure'. The second meaning is the prescriptive practice of determining and recognizing one linguistic variety (dialect) as being purer or of intrinsically higher quality than other related varieties.

The perceived or actual decline identified by the purists may take the form of a change of vocabulary, syncretism of grammatical elements, or loanwords. The unwanted similarity is often with a neighboring language the speakers of which are culturally or politically dominant. The ideal may invoke logic, clarity, or the grammar of classic languages. It is often presented as a conservative measure, as a protection of a language from the encroachment of other languages or of the conservation of the national Volksgeist, but is often innovative in defining a new standard. It is sometimes part of governmental language policy that is enforced in various ways.

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Protectionism in the context of Free trade

Free trade is a trade policy that does not restrict imports or exports. In government, free trade is predominantly advocated by political parties that hold economically liberal positions, while economic nationalist political parties generally support protectionism, the opposite of free trade.

Most nations are today members of the World Trade Organization multilateral trade agreements. States can unilaterally reduce regulations and duties on imports and exports, as well as form bilateral and multilateral free trade agreements. Free trade areas between groups of countries, such as the European Economic Area and the Mercosur open markets, establish a free trade zone among members while creating a protectionist barrier between that free trade area and the rest of the world. Most governments still impose some protectionist policies that are intended to support local employment, such as applying tariffs to imports or subsidies to exports. Governments may also restrict free trade to limit exports of natural resources. Other barriers that may hinder trade include import quotas, taxes and non-tariff barriers, such as regulatory legislation.

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Protectionism in the context of National conservatism

National conservatism is a variant of conservatism that prioritizes the defense of national and cultural identity, often based on a theory of the family as a model for the state. It is oriented towards upholding national sovereignty, which includes opposing illegal immigration or immigration per se and having a strong military.

National conservatism departs from economic liberalism and libertarianism and takes a more pragmatic approach to regulatory economics and protectionism. It opposes the basic precepts of enlightenment liberalism such as individualism and the universality of human rights, and in America and Europe is majoritarian populist. National-conservative parties often have roots in rural environments, contrasting with the more urban support base of liberal-conservative parties.

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