Protectionism

A policy that attempts to promote companies based in the home country and discriminate against those from abroad. This can be done via taxes or tariffs or via regulations that exclude or hobble imports. Protectionism is often politically popular because it appears to safeguard workers’ jobs, and many companies will lobby politicians to exclude foreign competitors. But believers in free trade argue that the effect of protectionism is to reward inefficient domestic companies and to increase the prices paid by consumers. For more, see this Explainer.