To protect the manufacture of essential goods. To protect declining industries from creating further structural unemployment. Disadvantages of Protectionism Prevents countries enjoying the full benefits of international specialisation and trade. Invites retaliation from foreign governments. Protects inefficient home industries from foreign competition.
Consumers pay more for inferior produce.
Quotas Quotas restrict the actual quantity of an import allowed into a country. Other Protection Techniques Administrative practices can discriminate against imports through customs delays or setting specifications met by domestic, but not foreign, producers. Britain has elected to stay outside this until at least after the next election - 2002. Over 140 member countries pay a sum of their own currency into a pool. The amount paid in depends on the size of their economy.