Study Notes

Protectionism and Open Trade

Level:
A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas

Last updated 9 Aug 2019

Protectionism involves any attempt by a country to to impose restrictions on the open trade in goods and services.

The main aim of protectionism is to cushion domestic businesses and industries from overseas competition and prevent the outcome resulting solely from the interplay of free market forces of supply and demand.

Open trade, therefore, is the opposite of protectionism. Open trade involves the removal or reduction of barriers to international trade.

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