Explain the concept of 'protectionism'.

The concept of 'protectionism' refers to an economic policy aimed at restricting imports from other countries. This is typically done through the imposition of tariffs, which are taxes on imported goods, or quotas that set a limit on the quantity of a good that can be imported. The primary objective of protectionism is to protect domestic industries from foreign competition by making imported goods more expensive and thus less attractive to consumers.

By implementing such measures, governments believe they can bolster local businesses, preserve jobs, and stimulate the national economy. This policy is often based on the idea that new or struggling domestic industries need support and protection from established foreign competition that might dominate the market if unrestricted.

In contrast, encouraging free trade promotes open market conditions where goods and services can flow freely across borders without barriers. The promotion of exports typically involves reducing barriers to trade, which is the opposite of protectionism. Additionally, providing subsidies to multinational companies is not synonymous with protectionism, as it does not necessarily involve restrictions on imports.

Overall, protectionism plays a significant role in international trade discussions, influencing the balance between safeguarding national interests and promoting global commerce.