Eco Challenge

Protection can be defined as any type of government action that has the effect of giving domestic producers an artificial advantage over foreign competitors. The main protectionist measures include tariffs, import quotas and subsidies.
Despite the economic arguments in favour of free trade, historically most countries have tended to impose at least some forms of protection to assist local producers and protect them from overseas competition.
There are a number of arguments that have been put forward to justify why countries impose protectionist barriers to trade, including the need to assist infant industries, protecting industries from overseas firms dumping goods, reducing unemployment and arguments for self-sufficiency in certain items.
Infant industries
New industries generally face many difficulties and risks in their early years. They usually start out on a small scale, with costs tha...