CRITICALLY EXAMINATION

Why Countries Undertake Protectionist Measures

Why Countries Undertake Protectionist Measures

Examples of protectionist measures taken by different countires include American System, French Dirigisme, Japan's use of MITI to "pick winners and losers", Malaysia's imposition of currency controls in the wake of the 1997 currency crisis, China's controlled exchange of the yuan, Argentina's economic policy of tariffs and devaluation in the wake of the 2001 financial crisis and the United States' use of tariffs to protect domestic steel production.

In none of the examples given above was the original bid deemed to be against the interests of competition. In many cases the shareholders ...