1. Protectionism as a Phenomenon of the World Economy Stanislav Ternovskiy IE-09

2. Structure 1.History of the protectionism phenomenon. 2.Protectionism and methods of its implementation. 3.Advantages and disadvantages of protectionism in connection with free trade.

3. Historical Stages of the Protectionism Theory 1. XVII-XVIII centuriesProtectionism as a part of the mercantilism theory 2. XVIII centuryDominating role of protectionism 3. XIX centuryInitiating the free commerce doctrine 4. XXI century Renewing protectionism policies due to the crisis

4. What is protectionism?  Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow “fair competition” between imports and domestically produced goods and services.

5. Protectionism Policies include the following items: 1. Tariffs 2. Import quotas 3. Administrative barriers 4. Anti-dumping legislation 5. Direct subsidies 6. Export subsidies 7. Exchange rate manipulation

6. Global Trade Alert Assess The amount of protectionism measures The amount of liberalizing measures

7. Advantages of Protectionism Advantages of protectionism include: struggling with structural unemployment stimulating the economic growth in the short-term period protecting “young” industries

8. Disadvantages of Protectionism Disadvantages of protectionism include: affecting the economies of the trading partners favorable conditions for the appearance of monopolies increasing prices for domestic consumers undermining the country's export by going up prices

9. Major Benefits of Free Trade

10. Conclusion  The only way of including protectionism in the economic comprehensive system of response is its constant replacement with stable development of the production sector and well-grounded commercial policy, both domestically and abroad.

11. References http://www.globaltradealert.org http://en.wikipedia.org http://www.econlib.org