Task 0 Effects of Globalization on national economies by pestle approach 2

2.3 Protectionist policies

Protection policies involve government policy in favour of the domestic industry and reduce the influence and competition of foreign imports. The rules of protection include

• Tariffs on imports - making imports of goods more expensive.

• Quotas - limits on the volume of imports, e.g. voluntary export to import Japanese cars

• Domestic subsidies - This gives domestic industries a relative advantage over competitors who do not get the same government intervention.

• Non-tariff barriers - Specific environmental regulations, which make imports unsuitable for sale in that country.

• Money manipulation - If a country maintains the value of money, exports will become somewhat more competitive (Wailes, 2005).