What does trade protectionism aim to achieve?

Trade protectionism primarily aims to use government regulations to limit imports, which serves to protect domestic industries from foreign competition. By imposing tariffs, quotas, or other restrictions on imported goods, a country can make it more challenging for foreign products to enter the market, allowing local businesses to thrive without facing the pressure of cheaper or more competitive goods coming from abroad. This can help preserve jobs within the country, support emerging industries, and maintain national economic stability.

The method applied in trade protectionism ensures that to some extent, the domestic market is shielded from external factors that could disrupt local economies. For example, when a government imposes tariffs on imported steel, it raises the cost of foreign steel, thus making domestically produced steel more attractive to manufacturers and consumers.

While options that include promoting free trade agreements and encouraging foreign investments suggest a more open economic environment, they do not align with the fundamental goals of protectionism, which seeks to restrict imports rather than promote openness. Additionally, while raising the prices of imported goods can result from such regulations, it is a secondary effect rather than the primary aim of trade protectionism itself.