Does protectionism breed corruption?

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With the concept of protectionism, countries place restrictions on imports into the economy. This seems like isolating the country from having neighboring countries enter and discourages competition. With this, there will be a decline in trade and countries’ reason to innovate and improve will be lessened as there are no other emerging markets within the country to compete with. Moreover, the domestic production of the products with a competitive advantage will increase and generate higher revenue. However, as the price rises and became higher, they will have no other choice but to choose the offered alternative which the country thinks will benefit the consumers. Furthermore, the demand for a certain product will decrease as some don’t reach the living standards set within the country. 

In addition, it involves higher tariffs (a type of tax on imports) or quotas and embargoes. Other forms of protectionism can be less obvious, such as domestic subsidies to give industries unfair advantages. Likewise, some jobs in these industries may be saved, but jobs in other industries are likely to be lost. There are still other negative effects of protectionism, however, countries who impose this concept do not put attention to this stumbling block for the reason that they only aim for temporary solutions to the problems. It seems like they are taking advantage of the implementation of these policies and gain for their self-interest rather than for the economy of their whole country as well the consumers. Therefore, the main downside of protectionism if not properly handled is the possibility of breeding corruption. Abuse in power for personal gain is imminent and while they are benefiting from these acts, the country and its consumers are suffering. Thus, increasing corruption in tariffs, as well as subsidies and other methods of supposed to be protections, may lead to more serious conflicts and tensions between countries and on a global scale. 

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