Running Head: GOVERNMENT PROTECTIONISM
Globally, maximum protection of the local businesses and jobs have been secured by the
relevant governments at a substantial degree of accuracy. Principles, rules, and regulations have
been formulated by the local authorities across the world to block international trade, for
example, implementation of tariffs on the imported goods and services. The broad limitation of
international trade has led to positive and negative effects that have caused the diversion of the
economic equilibrium at different angles. The core objective of the local authorities is to favor
the local trade by reducing the competition between the local and foreign products and services.
However, these limitations have increased the market of the local products in different countries
but have also affected the people who earn a living from trade in the sectors of exports and
imports. The following is an evaluation of the government protectionism in the country Kenya
located in the African Continent.
Introduction of high tariffs by the government of Kenya has indeed exhibited
protectionism. Tariffs refer to the taxes imposed on imported goods and services. The
inadequacy of various products and services in Kenya have led to the introduction of importation
of the particular products to create an equilibrium in the consumption levels. Whereby, the low
produced goods and services are imported, and the adoption of the highly produced goods and
services is limited. This is an excellent factor towards economic growth as the unavailable
factors of production can be imported and applied efficiently. However, the government has
introduced high taxes in the zones of importation. This has affected the country in various levels
proportionally contributing to the economic growth in different degrees. Due to the high tariffs,
the price of the imported goods is very high compared to that of the local products which have
greatly favored the market of the local products and services leading to efficient profits
contributing to the economic growth and hence raising the standard of living of the Kenyans.
Additionally, the people earning a living from the imported goods and services have faced losses
leading to the reduction of their standard of living which have eventually led to those people
involving themselves in dangerous activities to earn a living, for example, theft and corruption.
Limitation of the foreign investors in the domestic firms is another factor that the
Kenyan government has employed to curb the international trade. Foreign investors in any
country are of great effect towards economic growth. This is because, these investors are always
equipped maximally with the factors of production leading to the production of high-quality
products, whereby, people in that country are offered with uncountabl...