Question 14

Countries implement trade protectionism primarily to restrict international trade.

Trade protectionism is often pursued to limit international trade, thereby shielding domestic industries from foreign competition and promoting local economic growth.

A) To restrict domestic trade

This option is incorrect because trade protectionism does not aim to restrict domestic trade. Instead, it focuses on regulating international trade to protect local industries from external competition. Domestic trade is typically encouraged in a protectionist framework.

B) To restrict international trade

This option is correct as trade protectionism specifically involves measures such as tariffs, quotas, and import bans that are designed to limit international trade. By doing so, countries can protect their domestic industries and jobs from foreign competition.

C) To protect imported goods from domestic laws

This option is incorrect because trade protectionism does not aim to protect imported goods from domestic laws. In fact, protectionist measures are generally intended to impose regulations on imports to favor local products over foreign ones.

D) To protect firms that export goods from foreign laws

This option is incorrect because trade protectionism is primarily focused on limiting imports rather than providing protection for exporters from foreign laws. While exporters may benefit indirectly from reduced competition, the core purpose of trade protectionism is to safeguard domestic markets.

Conclusion

In summary, the implementation of trade protectionism is fundamentally about restricting international trade to protect domestic industries from foreign competition. Option B accurately captures this intent, while the other options either misinterpret the purpose of trade protectionism or address unrelated concepts.