Import Restraints and Industrial Performance: The Dilemma of Protectionism

With the internationalization of markets and the progressive liberalization of world trade, the threat of foreign competition has revived the age-old cry for protectionism: to protect the nation's balance of payments, to protect domestic labor from import-induced unemployment, and to protect domestic industry from the unfair competition of low wage countries. These arguments are particularly appealing in times of recession, and political office seekers are not loath to embrace them, especially in election years.