Business

Study Notes

Protectionism and Open Trade

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

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.

Boston House,
214 High Street,
Boston Spa,
West Yorkshire,
LS23 6AD

Tel: +44 0844 800 0085

© 2021 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.