Economic Growth and Public Policy of the Uk Does the...

Economic Growth and Public Policy of the UK: Does the protectionism help? Introduction The effects of globalization have touched all the aspects of life and business today. One aspect is the trading policies between countries. Since the late nineteenth century, the collision started between domestic and foreign industries, which ask governments for measures that could protect local industries, without discouraging the country’s trade relations. The term ‘Protectionism’ was thus introduced in the language of global trade and economy (Rowley, 2002). Protectionism is an economic policy applied in the trading system, to restrict the quantity of imported items, and to flourish country’s exports. The objective of this is policy is to†¦show more content†¦Hence countries practicing protectionism, would suffer from fewer importers, which could eventually restrict their export options, thus reducing their trade flow and economic growth (Ahearn, 2009) The economic dependency of the United States of America on its trade sector woul d be beneficial in illustrating the relation of protectionism to the economic growth. In the USA, the trade Union believes that protectionism is the only policy, with which the country can maintain domestic industrial growth (Trwin, 1998, 1015-1026). Being a centre for global trade, the industries of the USA have been through a significant setback in the past few years, with a prominent increase in the unemployment rate. Moreover, the growing numbers of import of Chinese goods, which are available at cheaper rates comparatively, have decreased the purchase of domestic goods in the USA This has ignited the debate to, either increase tariffs on such items to protect domestic firms and industries, or to protect the needs of civilians. From the last few years, many governments, including that of USA, U.K and several other facing the challenges of economic downturn, are looking for alternate measures, as protectionism does not seems to provide long term solution for economic crises. As argued by Tullock (1967), protectionism causes the rent of household to increase to a substantial amount. This becomes the reason of public stress and economic seizing for the country. Tariff added onShow MoreRelatedTaking a Look at the 1920s1642 Words   |  7 Pagesassociated with industrial electrification, made possible by mass production. 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