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Essay
“ Importance of protectionism in 21th century economics”
Kalandarova Nadjifa
International relations 13016
The importance of protectionism is very high, based on this policy, you can visualize how convenient this policy for the domestic market. Not have to compete with foreign markets, there is the opportunity in the field of international trade export of its products its products at the international market. Intensification of this economy in a certain field allows businesses to quickly and efficiently adapt to the global economy. Such a policy is usually resorted backward economies. Protectionist measures, the state is seeking to support domestic producers, especially during their formation.
The fence of the domestic market of their country, from penetration of foreign goods. The task of protectionism aims, through which stimulated the development of the national economy. In the 21st century is all idealization, each country adheres to the policy of protectionism for the good of the country, improvement of economy within the country is an integral part of the development of the country, the country wishes prosperity and if the country will go on leading the steps, in order for the country not belong to the undeveloped countries, only 1 world that today is inalienable. This policy even by the way for low-income countries, which belong to 3 the world. It should also be noted that this policy has its disadvantages, it may not be perfect. Since this policy is designed to protect the domestic market from foreign competition through the system to certain restrictions, but discontent on the part of citizens appear due to the shortening of the delivery of imported goods, but that appears in small quantities on them are increasing rates, and this leads to the instability of the political situation in the country.
There are also concerns regarding unemployment, because if you work only inside the country, will not be desired income i.e. unemployment will grow. Strengthening of monopoly and that is, that does harm to relations within the country. This can be attributed to the fact that this is a kind of denial of rights as a result of the monopoly position of domestic producers. This way you can easily tell, there's plenty of disadvantages, prevailing in the economy. There are various problems of optimal, or better or more appropriate tariff level, ensuring the maximization of national welfare.
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Development of protectionist trends allows us to distinguish the following forms of protection: 1) selective protectionism protection of specific goods, or protection of a particular state. the 21st century is based on innovations in the economy. So protectionism is determined something important, policy, to be followed by the citizens of the state. This process of globalization of the modern world economy see to the formation in the future more and more of the integral economic system. a chance of following this economy to help exporters to take out as many of their products, making their products more competitive on the international market, and to restrict imports, reducing the competitiveness of foreign goods on the domestic market. |
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Of course everything depends on the degree of development of country-specific and industry to protect its producers must not forget that competition is one of the growth drivers |
the most important directions of protectionism now should be to increase the role of non-tariff restrictions and selective nature of protectionist measures: not protected domestic production in General, and specific industries. Protectionist measures increasingly introduced as an element of the structural policy aimed at the adaptation of national producers to ongoing changes in the world economy.
The role and importance of protectionism in the current economic conditions continue to be significant. State safeguard policy will enable the national economy faster and more efficiently adapt to the global economy.
Measures of protectionism is justified solely goals of facilitation and strengthening of national industry, and only those Nations who possess extensive and rounded territory, significant populations, significant natural sources of wealth, a developed agriculture, standing on higher stage of civilization and political development
if the nation is still at a low stage of development and culture or insufficient inhabited .Потомиу in such country any restriction of trade to plantations own industrial production, is premature and has a disadvantageous influence on the development of the nation. Only when the intellectual, political and economic education of the nation under the influence of freedom of trade will make progress so significant, that the importation of foreign industrial products and the lack of sufficient markets for their products will hinder its further development, then the measures of the customs of patronage will be useful.
Country, territory are insufficient extensive and embodies a variety of natural sources of wealth, which is not rounded, absolutely cannot use the customs system or, at least, can't use it with complete success. To some extent, this is correct,as each country is not ready to adjust to a similar policy
So there are reasons why we don't is the development of the insufficient development of means of communication, lack of technical knowledge, experience and spirit of the industrial enterprise; Or lack of diligence, education, morality, and honesty in people, the shortage of material capital, poor development of state institutions, lack of freedom and legal safeguards, ill-rounded territory, preventing the suppression of smuggling
The greatest distribution was received with the following measures:
Allocations - establishment of quotas on the export or import of certain goods or commodity groups, within which trade operations are carried out with relative ease. In practice, this list of goods free of import or export of which is limited to a percentage of the volume or value of the national production.
Licensing is an organization that wishes to engage in foreign economic activity must obtain permission (license) from government authorities. Such a policy gives the state control of international relations and successfully implement measures on regulation. Licensing can also be used for additional material resources when issuing the license, that is, it can act as a form of customs duties3
Criticism of protectionism:
in the long term protectionism undermines the foundations of national production, because it weakens the competitive pressure from the world market:
reduces the welfare of consumers, because due to the introduction of protectionist measures, the growth of prices for goods;
enhances international competitiveness States and threatens the stability and security of the world economy.
The benefits of free trade:
free trade can improve the welfare of trading Nations as a result of the application of the international specialization of production and обменана the basis of the principle of comparative advantage;
contributes to the improvement of quality of production due to the increase in international competition;
optimizes the process of allocation of productive resources;
promotes international concentration of production and mass production of goods.4
2 http://www.grandars.ru/student/nac-ekonomika/protekcionism.html
3 http://works.doklad.ru/view/sAkVWTPI6_Q.html
4 http://www.inventech.ru/lib/macro/macro-0060/