Which of the following is an objective of protectionism?

• A. To reduce government intervention in markets
• B. To shield domestic industries from foreign competition
• C. To encourage unrestricted imports
• D. To maximize global trade efficiency

Answer: (B)

Verified step by step guidance

1. Understand the concept of protectionism: Protectionism refers to government policies that restrict international trade to protect domestic industries from foreign competition.
2. Identify the objectives of protectionism: These typically include shielding domestic industries, preserving jobs, and reducing trade deficits, rather than reducing government intervention or encouraging unrestricted imports.
3. Analyze each option in the problem: - 'To reduce government intervention in markets' contradicts protectionism because protectionism involves more government intervention. - 'To shield domestic industries from foreign competition' aligns with the main goal of protectionism. - 'To encourage unrestricted imports' is the opposite of protectionism. - 'To maximize global trade efficiency' is generally a goal of free trade, not protectionism.
4. Conclude that the correct objective of protectionism is to shield domestic industries from foreign competition, as it directly reflects the purpose of protectionist policies.
5. Remember that protectionism aims to protect local businesses by imposing tariffs, quotas, or other trade barriers, which is why shielding domestic industries is the key objective.