Okuzeka
Economics vocabulary · Trade and Exchange Rates

Protectionism

Meaning in economics, with examples

/prəˈtekʃənɪzəm/nounCommon term

In economics, protectionism means: Policies that shield domestic producers from foreign competition, for example through tariffs, import quotas or subsidies.

In Turkish: korumacılık

How it is used

Debated in the news and in trade theory. Supporters say it protects jobs and young industries; most economists warn that it raises prices and reduces efficiency. The adjective is protectionist: protectionist measures, protectionist pressure.

Example sentences

  1. Rising protectionism has slowed the growth of world trade.

  2. Trading partners criticised the new import quotas as protectionist.

Common collocations

  • rising protectionism
  • protectionist measures
  • a return to protectionism
  • protectionist policies
  • tariffA tax that a government charges on goods when they are imported, which makes foreign products more expensive compared with local ones.
  • free tradeInternational trade with few or no barriers such as tariffs, quotas or subsidies, so that goods and services move freely between countries.
  • importA good or service bought from producers in another country; as a verb, to bring goods or services in from abroad.
  • subsidyMoney or other support that a government gives to producers or consumers to lower the price of a product or to encourage an activity.
  • comparative advantageThe ability of a country or person to produce something at a lower opportunity cost than others; it is the basis of the gains from trade.

More terms: Trade and Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.