Over decades it has been witnessed across the world that the governments have tendencies to resort to protectionism when things at domestic level get tough and their economic policies fail to perform. The protectionist tendencies of the central governments of the nation are often found to transact to the states to inspire them to indulge in such protectionist practices ignoring the fact that such practices in domestic markets often have only emotional outrage than any empirical evidence of bringing in any substantial benefits.
The empirical evidences suggest that protectionism often leads to inefficiencies in economies. However, to some extent, the limited protectionist approach to the economic responses at national level against import and dumping has quite a different dynamics due to heterogeneous global market conditions than such protectionist practices in domestic (homogeneous) markets.






