The likey economic implications of an increase in protectionism on a country's economy are?

Question

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Answer 1

well the likely implications can be culled from david hume's theory which he used to demonstrate the effect of mercantilism in the era in which it was used

among several effec is the increase in the  general price level which is as a direcrt result of increase in money supply however when there is an increase in the money supply it causes inflation and it make the competitiveness of a country's good ment for export to fall

in reality economist have found out that a country cannot build fotress arrount itself or else it will collapse

in the nutshell the general effect of protectionism are

1. increase in the money supply as a result of export

2. increase in the price level as result of above

3. loss of competitiveness of the country's export

E.T.C

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Answer 2

Do too much of it, and you can turn a mild recession into the Great Depression:

http://en.wikipedia.org/wiki/Smoot-Hawle...

Or you can make your country helpless in the face of a display of power by other countries:

http://en.wikipedia.org/wiki/Convention_...

http://en.wikipedia.org/wiki/Bakumatsu

In any case, protectionism costs, big time. There are are few theoretical arguments for cases where it can help, but in practice, there are no good examples where it has:

http://en.wikipedia.org/wiki/Protectioni...