Question

Defend or refute the given statement with valid argument:

"The policy of protectionism encouraged the growth of domestic industries, but at the same time proved to be an impediment."  

Answer 1

1. Protectionism is a government-imposed trade policy that seeks to shield domestic companies and workers from foreign competition. Protectionism often involves tariffs, quotas, product standards, and government subsidies.
2. While protectionism might boost home industry and job creation by preventing foreign competition, it can also hinder long-term success.
3. Reduced competition can lead to complacency, diminished innovation, and increased consumer costs over time. Protectionism can lead to trade wars, inhibit global economic integration, and limit overall development.