The  Effects of Protectionist Policies in Romania

Kishore G.  Kulkarni; Nina Rata

doi:10.21844/mijia.17.1.1

Kishore G. Kulkarni
Nina Rata Department of Economics, Metropolitan State University of Denver, Denver

DOI: https://doi.org/10.21844/mijia.17.1.1

Keywords: protectionism, international economic policy, foreign trade, tariffs, non-tariff measures, Romania.

Abstract

Protectionism is an economic doctrine that consists of protecting the national economy by limiting or prohibiting the import of foreign
products. A country can filter foreign exchange through various protectionist, tariff (involves the use of customs barriers) and non-tariff
(using barriers such as quotas, technical rules, administrative formalities, etc.).Governments resort to trade policy measures in a wide
variety of situations: to balance the balance of payments, for a better allocation of resources (by promoting certain industries or sectors
considered promising), to redistribute the national income, etc. Most commonly, however, they are used when domestic industries cannot
cope with external competition.
The main cause is their lack of competitiveness concerning foreign producers. For this reason, states often prefer to protect their domestic
industries through trade policy measures, despite the negative effects they have on the economy as a whole. This paper outlines some
issues specific to protectionist theories in foreign trade and their impact on a small country like Romania also protectionist theories, trade
policies, and arguments in support of and against protectionism.

Author Biographies

Kishore G. Kulkarni

Protectionism is an economic doctrine that consists of protecting the national economy by limiting or prohibiting the import of foreign
products. A country can filter foreign exchange through various protectionist, tariff (involves the use of customs barriers) and non-tariff
(using barriers such as quotas, technical rules, administrative formalities, etc.).Governments resort to trade policy measures in a wide
variety of situations: to balance the balance of payments, for a better allocation of resources (by promoting certain industries or sectors
considered promising), to redistribute the national income, etc. Most commonly, however, they are used when domestic industries cannot
cope with external competition.
The main cause is their lack of competitiveness concerning foreign producers. For this reason, states often prefer to protect their domestic
industries through trade policy measures, despite the negative effects they have on the economy as a whole. This paper outlines some
issues specific to protectionist theories in foreign trade and their impact on a small country like Romania also protectionist theories, trade
policies, and arguments in support of and against protectionism.

Nina Rata, Department of Economics, Metropolitan State University of Denver, Denver

Protectionism is an economic doctrine that consists of protecting the national economy by limiting or prohibiting the import of foreign
products. A country can filter foreign exchange through various protectionist, tariff (involves the use of customs barriers) and non-tariff
(using barriers such as quotas, technical rules, administrative formalities, etc.).Governments resort to trade policy measures in a wide
variety of situations: to balance the balance of payments, for a better allocation of resources (by promoting certain industries or sectors
considered promising), to redistribute the national income, etc. Most commonly, however, they are used when domestic industries cannot
cope with external competition.
The main cause is their lack of competitiveness concerning foreign producers. For this reason, states often prefer to protect their domestic
industries through trade policy measures, despite the negative effects they have on the economy as a whole. This paper outlines some
issues specific to protectionist theories in foreign trade and their impact on a small country like Romania also protectionist theories, trade
policies, and arguments in support of and against protectionism.