Protectionism as a Phenomenon
of the World Economy
Stanislav Ternovskiy
IE-09
Structure
1.
2.
3.
History of the protectionism
phenomenon.
Protectionism and methods of its
implementation.
Advantages and disadvantages
of protectionism in connection with free trade.
Historical Stages of the
Protectionism Theory
1. XVII-XVIII centuries
Protectionism as a part of the
mercantilism theory
2. XVIII century
Dominating role of
protectionism
3. XIX century
Initiating the free commerce
doctrine
4. XXI century
Renewing protectionism
policies due to the crisis
What is protectionism?

Protectionism is the economic policy of restraining
trade between states through methods such as tariffs
on imported goods, restrictive quotas, and a variety of
other government regulations designed to allow “fair
competition” between imports and domestically
produced goods and services.
Protectionism Policies
include the following items:
1. Tariffs
2. Import quotas
3. Administrative barriers
4. Anti-dumping legislation
5. Direct subsidies
6. Export subsidies
7. Exchange rate manipulation
Global Trade Alert Assess
The amount of
protectionism
measures
Ukraine
6%
22%
The amount of
liberalizing measures
14%
Russia
35%
China
7%
17%
40%
18%
19%
Great
Britain
USA
22%
Advantages of
Protectionism
Advantages of
protectionism
include:
struggling
with structural
unemployment
stimulating the
economic growth
in the short-term
period
protecting
“young”
industries
Disadvantages of
Protectionism
Disadvantages of
protectionism
include:
affecting the economies
of the trading partners
favorable conditions for
the appearance of
monopolies
increasing prices for
domestic consumers
undermining the country's
export by going up prices
Major Benefits of Free
Trade
Average
per capita
GNI
70
60
50
40
30
20
10
0
to
m
B
ot
Th
ir
d
on
d
Se
c
To
p
Global
Hunger
Index
Environmen
tal
Performanc
e Index
Conclusion
 The only way of including protectionism in the economic
comprehensive system of response is its constant
replacement with stable development of the production
sector and well-grounded commercial policy, both
domestically and abroad.
References
• http://www.globaltradealert.org
• http://en.wikipedia.org
• http://www.econlib.org