Phase IFoundation
Background
Overview
Crucial for understanding global economic dynamics, international relations, and the impact on India's trade policy, exports, and domestic industries. Relevant for GS2 (International Relations) and GS3 (Indian Economy).
Protectionism refers to government policies that restrict international trade to help domestic industries, often through tariffs, import quotas, or subsidies. Trade wars occur when countries impose such barriers in response to similar actions by their trading partners, leading to a cycle of escalation that can disrupt global supply chains and economic stability.