Why is protectionism good and bad for a country?

ineedtorevise127

E.g. tarrifs and quotas why are they good and bad?

Reply 1

FrogInABog

Original post by ineedtorevise127

E.g. tarrifs and quotas why are they good and bad?

To oversimplify enormously:

Good - import taxes will encourage people to buy things made within the country, thereby boosting manufacturing, production, industry, business, etc.

Bad - other countries, who will loose out on exports as no one in the first country wants to buy from abroad, will impose import duties on goods from that country, thereby damaging its manufacturing, production, industry, business, etc.

Sort of a 'swings and roundabouts' situation, although the world seems to be consistently moving away from protectionism and towards globalisation.