Protectionism Looms as Economies Struggle, Threatening Global Trade Stability
The article investigates how countries have reacted to the financial crisis by studying trade protection measures. Despite past beliefs that protectionism was decreasing, the study shows that countries are still turning to trade restrictions during economic downturns or when their competitive edge weakens. The researchers looked at various factors beyond just tariffs and found that protectionism could be making a comeback, posing risks for the global economy. In simple terms, when countries face hard times, they are more likely to restrict trade to protect their own industries.