Reasons for protection

• Protection refers to :: government policies that give domestic producers an artificial advantage over foreign competitors, such as tariffs on imported goods.

• The main reasons (argument) for protection are:
  ?

• Protecting Infant industries

• Prevention of dumping

• Protection of domestic employment

• Defence and national security

• Other arguments:

  • differentials in wage levels
  • modern slavery
  • environmental factors

Infant industries

• New industries face difficulties and risks in their early years

Prevention of dumping

• production dumping is :: selling (exporting) a product at unrealistically low prices (below its production cost or below the domestic market price for the importing market)

Protection of domestic employment

• local producers are protected from competition with cheaper foreign imports
  • the demand for local goods will be greater and this will create more domestic employment.

Defence and national security

• Countries sometimes have non-economic reasons for wanting to retain certain industries