How can protectionism be practiced by governments?

Protectionism is a policy approach where governments take steps to shield their domestic industries from foreign competition. Implementing tariffs and import quotas serves this purpose effectively.

Tariffs are taxes imposed on imported goods, making them more expensive relative to local products. This cost increase can discourage consumers from purchasing foreign goods, thereby favoring local businesses. Import quotas, on the other hand, set a physical limit on the amount of specific foreign goods that can enter a country. This not only protects domestic industries from surplus imports but also creates an environment where local producers can thrive without being undercut by cheaper foreign alternatives.

Both tariffs and quotas directly reduce the volume of imports, enhancing the competitive position of domestic goods in the market. As a result, these measures are classic tools of protectionism aimed at safeguarding national interests and encouraging local economic growth.

In contrast, deregulating trade policies would likely lead to an increase in imports, which conflicts with the goals of protectionism. Encouraging international relations typically fosters free trade and cooperation, which again is at odds with protective measures. Increasing labor costs, while it could potentially impact competitiveness, does not directly align with protectionist practices and can instead harm domestic producers by making their products less competitive.