26.4 Arguments Against Protectionism

Protectionism prevents countries from specialising based on comparative advantage.

Protectionism increases international competition, driving down prices.

Protectionism can reduce the range of products available to consumers.

Protectionism helps firms fully benefit from economies of scale.

Protectionism can increase production costs by limiting access to raw materials.

Trade wars are a potential risk of protectionist policies.

Protectionism enhances global output and living standards by promoting specialisation.

Reducing competition through protectionism typically leads to lower consumer prices.

Protectionism guarantees higher quality products through reduced foreign competition.

By reducing international trade, protectionism increases consumer choice.

Protectionism may cause firms to lose access to cheaper raw materials.

Smaller market sizes from protectionism help firms lower their production costs.

Retaliation from other countries is unlikely in response to protectionist policies.

Protectionism prevents trade wars by reducing global trade dependency.

Protectionism increases consumer access to imported goods.

International competition declines when protectionist measures are applied.

Protectionism ensures domestic industries always produce at the lowest cost.

Higher tariffs usually increase the efficiency of global trade.

Limiting imports raises consumer choice and reduces prices.

Protectionism can cause escalating tariffs between countries, leading to trade wars.