How can protectionism impact international relations?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

Protectionism can significantly affect international relations, primarily by leading to trade wars or heightened tensions between countries. When a nation adopts protectionist measures, such as tariffs or quotas, it signals to its trading partners that it is prioritizing domestic interests over international cooperation. This often prompts retaliatory actions from affected nations, creating a cycle of escalated barriers to trade.

As countries impose these trade restrictions, the originally intended benefits of protectionist policies, such as protecting domestic industries or improving a nation's balance of trade, may come at the expense of diplomatic relations. Relationships that were once characterized by open trade may deteriorate into hostility as countries perceive protectionist actions as direct threats to their economic wellbeing.

Over time, this tension can influence broader international issues beyond trade, affecting alliances, political interactions, and even security concerns. Thus, the connection between protectionism and escalating trade wars illustrates how such policies can undermine cooperative international relations and foster conflict instead.

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