Protectionism isn't all that bad, it can help salvage the local
industry and save jobs too. But protectionism cannot persist
indefinitely, it could be use as a measure to protect the local
industry, giving them time to reorganise their structure, gain
technology to improve on their products.
Tariffs could be applied to the cheaper imports, which can go
into subsidising the local industry, this saves job in the local
industry.
If local producers produce at $10 while foreign country produces
at $5, the local government could always levy tariffs from the
foreign country at $2.50 per unit. The $2.50 goes into subsidising
and sustaining the local industry. Both products will sell at $7.50
in the local market. Yes, you could get it for $5 in another
foreign country, but by buying at $7.50, you save the jobs of the
local market. Everybody pays abit more, but everybody has a job.
Protectionism isn't any different from the Kereitsu's (系列) of the Japanese,
where they will use Japanese firms products though these products
are priced higher than other competitors.
If local industries are not protected, the country could face a
situation where it is totally dependant on another country which
could turn enemy for supply. Such is the case with USA, which is a
fervent supporter of free trade and also a transgressor of free
trade by protecting it's own steel industry, when other
countries could produce steel much cheaper than USA. If USA
loses it's ability to produce steel, their ability to wage war in
the future could also be threatened.
