Globalization: An Argument For Limited Protectionism

Abstract globalization has changed the way everyone does business. Throughout history, humanity has continued to expand its reach from local agricultural economy, cottage industry, domestic industry to the new global international business framework that exists today. This development is very logical as it increases product production and service efficiency. However, when placed in the background, the theoretical maximization of efficiency can have disastrous consequences for an independent country.

It feels like a very contemporary dilemma, but the discussion between free trade and protectionist supporters walks a long way. This discussion started in the 15th century in Europe, and historians were called mercantilism. This is a pioneer of what we are making more popular today as protectionism. Mercantilism is more or less interested in increasing the assets of the country before and after each economic theory. However, it has a very special view on how to do this. Mercantilists must strive to create as much as possible within their borders - in order to become more prosperous - and if we do not reduce dependence on foreign imports to a minimum I believe it will not. The role of the government is to support the local industries of all industries from foodstuffs to machinery to agriculture, imposing heavy tariffs on imported goods, preventing foreign manufacturers from crossing the border, It is to compete with companies.

The infant industry's claim is one of the most appropriate and general discussion that developing countries (LDC) use to prove the use of protectionism. They believe that it is very difficult for their sunrise industry to compete with established industries of advanced countries (DC). This is a fact because mature industries have opportunities to raise production capacity by technological progress, and they can make profits while maintaining low prices. The similar industries of the newly developed LDC due to lack of production technology and experience have done so under severe disadvantage, so production efficiency will be much lower. If you are forced to compete with the 'big boy' on the world stage soon, these industries may be forced to close. Protectionism is a place indispensable to its existence.

Protectionist policy is a highly focused topic in economic discussion, as the economy strives to achieve the best balance to gain the best value between free trade and trade protectionist. In many ways, the global market is uncertain between pursuing the highest global level and the highest national level, and sometimes there is a difference between the two. One of the strongest claims against some degree of trade protectionism tends to make competition unreasonable, especially in developing markets where there is no infrastructure to monitor the business and enforce penalties. Unfair competition theory