Phase IFoundation
Background
Overview
UPSC frequently asks about international trade dynamics, the impact of protectionist policies versus free trade, and the economic and geopolitical consequences of trade wars on global stability and bilateral relations. It is a core concept in GS2 (International Relations) and GS3 (Indian Economy, especially the external sector).
Protectionism refers to government policies that restrict international trade, typically through tariffs, quotas, or other non-tariff barriers, to protect domestic industries from foreign competition. Trade wars occur when countries impose such measures in retaliation to similar actions by their trading partners, leading to escalating trade barriers and often straining international relations.