Can Protectionism Be Justified?

To protect strategic industries - a particular product or industry might be of strategic importance to a country, e.g. agriculture or coal or defence, and protectionism may be justified on the grounds that it is keeping alive an industry which plays a vital part in the security of the economy.

Why is protectionism justified?

The main reasons include: To safeguard domestic employment - as protectionist polices reduce import penetration. ... However, it might also reduce imports from some of the poorest economies in the world. To prevent dumping - which is where economies sell goods in overseas markets at a price below the cost of production.

Is protectionism favorable or not favorable?

There is a consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers have a significantly positive effect on economic growth.