What Is Government Regulation

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What Is Government Regulation
What Is Government Regulation

Video: What Is Government Regulation

Video: What Is Government Regulation
Video: Government Regulation: Crash Course Government and Politics #47 2024, April
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State regulation in the economic sphere is usually associated with numerous prohibitions and restrictions that apply to foreign manufacturers that compete with domestic ones. This policy is usually called protectionism.

What is government regulation
What is government regulation

Often, protectionism is associated with the principled policy of the leadership of the state or country, the main feature of which is the powerful support of the interests of local producers through strict, almost total control over the import of foreign goods into the territory. This also includes other measures of financial impact on the competitiveness of various groups of goods and services, including regulation and widespread price control at the level of state power.

Protectionism is divided into total and selective, these types exist depending on the extent of the coverage of the policy of protection of various industries. Among other things, both sectoral and general or collective protectionism are often singled out, there is also hidden, or implicit, corrupt and even "green" protectionism associated with the use of generally accepted principles of environmental law in the interests of the state.

It is interesting that protectionism as a concept appeared back in the 17th century during the powerful rise of domestic production by European countries, as one of the main ways to achieve a positive budget balance.

Russia adopted the experience of other countries only in the 19th and 20th centuries, introducing a huge range of various measures, such as toughening state duties and taxes for foreigners, which mainly led to a serious development of production, however, was the reason for the poor quality of many domestic goods.

For the benefit of

Protectionism has, as a rule, good intentions associated with the rise of the national economy and the improvement of a number of demographic indicators, however, many leading economists consider it a violation of the rights of citizens of different countries, this has to do with freedom of choice and business.

Today, the application of such a policy causes difficulties or is completely impossible within the framework of a single state. The emergence of the World Trade Organization in the early nineties of the twentieth century was a new round in the process of global economic consolidation and brought to naught the possibility of applying this ambiguous concept. Despite this, many believe that such a development model is a salvation for developing countries, in which production is just beginning to emerge and requires powerful lobbying at the state and government level.

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