Question
Whilst it was good news that major developed nations were recovering from recession at the end of 2009, the dramatic rise in protectionism reduced the
Whilst it was good news that major developed nations were recovering from recession at the end of 2009, the dramatic rise in protectionism reduced the volume of world trade and seriously threatened the global recovery. It had become increasingly apparent that there had been a return to economic nationalism during the recession. Tariffs and quotas had been imposed on imports and restrictions had been placed on takeovers of national firms by foreign capital. Anti-dumping cases lodged with the World Trade Organisation (WTO) increased by 31.5% from 2008 to 2009
Using the information provided in the extract and your knowledge of economics, evaluate the case for allowing countries to protect their economies from foreign competition.
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