Definition - What does Protectionism mean?

Protectionism is the practice of protecting domestic companies, industries and profits by regulating imports and subjecting them to certain criteria such as tariffs, duties or quotes.

In the context of the law, only governments have the authority to control tariffs, duties and quotas, which must be met for legal compliance.

Justipedia explains Protectionism

The reasons why protectionism exists is because without it, nations may worry about businesses from other nations coming into domestic markets and taking over them with cheaper products. The purchasing power of currency shifts dramatically from one nation to the next, so this can create disparities between labor prices in nations, which affects the price of goods. Protectionism is a way for countries to have some say over the prices of imports coming into their country.

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