Protectionism easily explained (explainity® explainer video)

00:04:13
https://www.youtube.com/watch?v=wFO8FDvLoms

Ringkasan

TLDRThe video discusses protectionism, a policy adopted by countries to protect domestic industries from foreign competition through measures like import tariffs. Using the fictional country of Drained as an example, it illustrates how protectionism can initially bolster domestic jobs and industries but eventually leads to increased consumer costs, lack of innovation, and international trade conflicts. The video warns of a protectionist spiral, where retaliatory measures can lead to global economic decline, as happened in the 1930s. In the end, the video suggests that reducing protectionism and strengthening international trade relations is more beneficial in the long run.

Takeaways

  • 🛡️ Protectionism involves measures to protect domestic industries.
  • 📉 Initially, it secures jobs but reduces international competition.
  • 💡 Lacks innovation and increases the cost of products.
  • 🚫 Reduces consumer choice by limiting foreign goods.
  • 🏦 Risk of a protectionist spiral leading to economic decline.
  • 🌎 Similar to the economic downturn in the 1930s.
  • 🔄 Long-term reduction of tariffs can stabilize economic relations.
  • 🤝 Strengthening trade relations is advised for sustainable growth.

Garis waktu

  • 00:00:00 - 00:04:13

    The video discusses the concept of protectionism in business, starting with the example of an imaginary country called Drawned. President Ridiculou implements protectionist measures to shield the domestic economy from foreign competition by increasing import tariffs. This initially secures local jobs and supports emerging sectors, but results in decreased international competition, leading to stagnant innovation and higher prices. Consequently, foreign goods disappear from the market, and President Ridiculou accrues debt despite supporting local companies. As foreign trade partners retaliate with their protectionist policies, Drawned faces potential economic isolation and risk of a global economic downturn. Realizing the long-term downsides, President Ridiculou decides to reduce import tariffs and strengthen trade partnerships.

Peta Pikiran

Video Tanya Jawab

  • What is economic protectionism?

    Economic protectionism involves measures like increasing import tariffs to protect domestic industries from foreign competition.

  • How does protectionism affect domestic industries?

    Initially, it can secure jobs and allow emerging sectors to grow by reducing foreign competition.

  • Can protectionism have negative consequences?

    Yes, it can lead to a lack of innovation, increased product costs, and international trade tensions.

  • What is a protectionist spiral?

    A protectionist spiral occurs when countries engage in retaliatory protectionist measures, potentially leading to global economic decline.

  • How does protectionism impact consumer choice?

    Consumers may face reduced choices, as foreign products become expensive or unavailable, limiting access to varied goods.

  • Why did President Ridiculou consider reducing import tariffs?

    He realized that long-term, protectionism could harm the economy and international relations.

  • What example is given for the effect of protectionism on product availability?

    Bananas that do not grow domestically may disappear from the market, illustrating reduced product availability.

  • What historical event is comparable to a protectionist spiral?

    It can lead to economic crises similar to the global economic downturn of the 1930s.

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Gulir Otomatis:
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    [Music]
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    we have all heard something about
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    protectors on skateboards motorbikes or
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    mountain bikes protectors keep us safe
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    from injuries this is what the Latin
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    root crota share actually means to
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    protect these days we frequently read
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    business news headlines like the
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    government is taking protectionist
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    measures but what precisely does
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    protectionism mean and what is its
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    connection with business let's take the
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    imaginary country of drawned
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    by introducing protectionist measures
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    president ridiculou has a clear
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    objective to shield the domestic economy
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    from competition from foreign companies
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    measures like this may involve
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    increasing import terrace commodity
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    trader Mike for instance looks abroad to
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    buy his steel cheaply which he then
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    shelled in drawned but the higher costs
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    of purchase forced him to introduce
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    significant price increases as well and
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    that scares off his customers now he
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    only buy feel on the domestic market in
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    other words the demand for products
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    manufactured locally Rises and the
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    supply of foreign products drops
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    initially it should help to make plenty
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    of jobs in the country secure president
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    ridiculou uses these measures to isolate
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    drawing from the foreign markets
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    emerging sectors benefit initially as
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    well Mike's sister Sarah
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    for instance works at a start-up in
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    drawling Valley that manufactures drones
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    corporations from abroad are no longer
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    able to compete directly so Sarah has
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    time to test how the company's drone
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    perform on the home market and how they
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    can be manufactured as cheaply as
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    possible
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    so protectionism can initially lead to
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    greater prosperity especially in large
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    countries like drawned but always at the
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    expense of other countries and that has
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    consequences there is a lack of
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    international competition and there is a
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    slump in innovation this means the
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    products are no longer state-of-the-art
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    and often even more expensive than
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    before foods that you know grow in drawl
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    and bananas for instance simply
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    disappear from the market and President
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    ridiculou he ends up sitting on a
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    mountain of debt caused by an emerging
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    imbalance
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    he supported domestic companies with
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    plenty of money but growth has suffered
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    at the same time as the companies are
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    usually only able to sell their products
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    on the domestic market in response to
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    president ridiculous unilateral actions
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    former trade partners now also turn
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    their backs on drawl and what's more
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    they too introduced protectionist
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    policies to isolate their markets there
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    is a risk of a protectionist spiral
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    which in extreme cases can even lead to
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    a global economic crisis like in the
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    1930s President ridiculou had only
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    intended to protect the domestic economy
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    but now he has achieved precisely the
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    opposite he gradually realized that
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    although economic protectionism can
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    provide drawin with short-term benefits
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    in the long term it will inevitably lead
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    to catastrophic consequences so he
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    decides without further ado that the
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    elevated import tariffs need to be
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    reduced and then instead the country
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    should strengthen its relationships with
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    important trade partners
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    [Music]
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    you
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Tags
  • protectionism
  • economy
  • trade
  • import tariffs
  • global crisis
  • innovation
  • consumption
  • domestic market
  • trade partners