Great question! A 25-mark essay on "Is protectionism always bad for the economy?" is a broad and evaluative topic that allows you to explore the benefits and drawbacks of protectionism. Here’s how to approach it: 1. Introduction Define protectionism: Policies designed to restrict imports or promote exports through measures such as tariffs, quotas, subsidies, or non-tariff barriers. Set the scope: Highlight that the impact of protectionism depends on factors such as the size of the economy, the level of development, and the specific industries involved. State your argument: While protectionism can harm efficiency and welfare in the long term, it may provide short-term benefits in certain circumstances. 2. Main Body Paragraph 1: Why protectionism can be bad for the economy Theoretical framework: Protectionism leads to misallocation of resources, as it shields inefficient industries from competition (reference comparative advantage). Consumers face higher prices due to tariffs and reduced variety of goods, leading to a deadweight welfare loss. Diagram: Tariff diagram showing the welfare loss. Real-world example: The US-China trade war (higher costs for US businesses importing intermediate goods). Evaluation: Discuss how the extent of harm depends on the scale of the protectionist measures and elasticity of demand for imports. Paragraph 2: Trade retaliation and global economic impact Argument: Protectionism can lead to retaliatory measures, reducing global trade volume and slowing economic growth. Example: Smoot-Hawley Tariff Act (1930) exacerbated the Great Depression. Evaluation: However, the impact depends on the level of global integration—smaller economies relying on trade may suffer more than self-sufficient ones. Paragraph 3: When protectionism may be beneficial Infant industry argument: Protectionism allows developing industries to grow without being outcompeted by established foreign firms. Example: South Korea's use of tariffs in the mid-20th century to develop its automobile and electronics industries. Evaluation: Risks include prolonged reliance on protectionism, leading to inefficiency. National security concerns: Some industries, like defense or food production, may need protection to ensure independence during crises. Example: Restrictions on rare earth metal exports by China to maintain domestic reserves. Paragraph 4: Other nuanced impacts Short-run vs long-run impacts: Protectionism may help in the short run (e.g., job protection), but in the long term, it reduces global efficiency. Impact on government revenue: Tariffs can generate revenue in economies with weak tax bases. Evaluation: Alternatives like free trade agreements may deliver similar benefits without significant downsides. 3. Conclusion Summarize the arguments: Protectionism often leads to inefficiency and higher consumer costs. However, it can be justified for infant industries or national security. Provide a judgment: Protectionism is not always bad but should be used sparingly and carefully, as the long-term costs often outweigh the benefits. Tips for Writing Use real-world examples to strengthen your application (e.g., Brexit, US-China trade war, South Korea’s industrial policies). Include diagrams to demonstrate understanding (e.g., tariff diagrams, production possibility curves). Evaluate throughout by considering counterarguments, the extent of impact, and long-term vs short-term implications. Would you like me to expand on any specific section or provide help with a diagram?