Which of the following best defines trade protectionism?

• A. The use of government policies to restrict imports and shield domestic industries from foreign competition.
• B. The establishment of trade agreements to promote international cooperation.
• C. The process of increasing exports by subsidizing domestic producers.
• D. The practice of encouraging free trade between nations by removing tariffs and quotas.

Answer: (A)

Verified step by step guidance

1. Understand the concept of trade protectionism: It refers to government actions and policies that restrict or restrain international trade, often with the intent to protect local businesses and jobs from foreign competition.
2. Identify key characteristics of trade protectionism, such as the use of tariffs, quotas, import bans, or subsidies aimed at limiting imports or making foreign goods less competitive.
3. Compare the given options to the definition of trade protectionism. Look for the option that mentions government policies restricting imports and shielding domestic industries.
4. Eliminate options that describe promoting free trade, increasing exports through subsidies, or establishing trade agreements, as these do not align with protectionism.
5. Conclude that the best definition of trade protectionism is the use of government policies to restrict imports and shield domestic industries from foreign competition.