The Global Financial Crises and Protectionism
Question No.1
In the time when there is sharp economic contraction then there is shutdown of some
firms or there is less need for the labor in the country. This situation results in the lay-offs of the
employees. Thus the employees and the labor unions make lobbies and call for the protection of
their jobs from the foreign competition (Cernat, L and M Madsen 2011). When the there is
protection from imports of the goods from the foreign countries then the demand for the local
product is protected. This protected demand for the local products creates demand for the labor
and the lay-offs are reduced. Moreover protection from the import of the labor from other
countries will also protect the jobs in the country (Cernat, L and M Madsen 2011). On other hand
during the boom period, there is demand for the labor in the country and people don’t worry
much about their jobs. So there is more calls for the protectionism from the foreign competition
when there is sharp economic contraction than the boom period (Evenett, S., Wermelinger, M.
2010).
Question No.2
Although there were measures against the protectionists during the contraction period of
2008 to 2009 and the rules like world trade organization were there to stop the protectionism but
still these measures were modest and many countries were able to protect their local producers
from the foreign competition (Cernat, L and M Madsen 2011). Some of the countries use could
use the different techniques to protect their producers from the foreign competition without
going against any of the measures or the rules of the World Trade Organization. Some of the
countries provided subsidies to their local producers which able to protect from the foreign
completion and some countries used the bureaucratic changes to protect and put limit imports. So
we can say that the measures against the protectionists were modest during the contraction period
of 2008-9 (Cernat, L and M Madsen 2011).
Question No.3
During the contraction period of the 2008 to 2009 some of the developed countries
provided subsidies to their local automobile producers which were able to protect from the
Question No.1
In the time when there is sharp economic contraction then there is shutdown of some
firms or there is less need for the labor in the country. This situation results in the lay-offs of the
employees. Thus the employees and the labor unions make lobbies and call for the protection of
their jobs from the foreign competition (Cernat, L and M Madsen 2011). When the there is
protection from imports of the goods from the foreign countries then the demand for the local
product is protected. This protected demand for the local products creates demand for the labor
and the lay-offs are reduced. Moreover protection from the import of the labor from other
countries will also protect the jobs in the country (Cernat, L and M Madsen 2011). On other hand
during the boom period, there is demand for the labor in the country and people don’t worry
much about their jobs. So there is more calls for the protectionism from the foreign competition
when there is sharp economic contraction than the boom period (Evenett, S., Wermelinger, M.
2010).
Question No.2
Although there were measures against the protectionists during the contraction period of
2008 to 2009 and the rules like world trade organization were there to stop the protectionism but
still these measures were modest and many countries were able to protect their local producers
from the foreign competition (Cernat, L and M Madsen 2011). Some of the countries use could
use the different techniques to protect their producers from the foreign competition without
going against any of the measures or the rules of the World Trade Organization. Some of the
countries provided subsidies to their local producers which able to protect from the foreign
completion and some countries used the bureaucratic changes to protect and put limit imports. So
we can say that the measures against the protectionists were modest during the contraction period
of 2008-9 (Cernat, L and M Madsen 2011).
Question No.3
During the contraction period of the 2008 to 2009 some of the developed countries
provided subsidies to their local automobile producers which were able to protect from the
