High taxes on imports to make foreign goods more expensive than local ones.
Protects unproductive industries that might otherwise need to innovate to survive. Summary Review beggar-my-neighbor policy
Artificially lowering a currency's value to make exports cheaper for foreigners and imports more expensive for locals. High taxes on imports to make foreign goods
These policies were most famous during the 1930s . Nations raised massive trade barriers to protect jobs, which eventually led to a collapse in global trade and worsened the global depression . These policies were most famous during the 1930s
💡 While tempting for politicians looking for a "quick fix" to domestic unemployment or industrial decline, beggar-my-neighbor policies are almost universally viewed by economists as mutually destructive in the long run. They provoke retaliation and shrink the "total pie" of global wealth . The WTO: Theory and Practice
Increases the competitiveness of exports through currency tactics . Major Drawbacks (Long-term)