Protectionism and Open Trade
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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.