One possible definition of protectionism includes the use of what?

Protectionism refers to economic policies and practices that countries implement to protect their domestic industries from foreign competition. This often includes various forms of government intervention aimed at restricting imports, increasing exports, or providing support to local businesses.

The use of government subsidies is a key aspect of protectionism. Governments may provide financial assistance to domestic industries to lower their production costs, allowing them to compete more effectively against foreign imports. This support can take various forms, such as grants, low-interest loans, or tax breaks, all aimed at enhancing domestic production and encouraging consumption of local goods over imported products. By making domestic goods more competitive in terms of pricing and availability, such subsidies help shield local businesses from international competition.

In contrast, free trade zones, import subsidies, and competitive pricing do not align with the core definition of protectionism. Free trade zones typically promote free market principles by facilitating trade without tariffs, while import subsidies may actually encourage imports rather than restrict them. Competitive pricing generally pertains to market dynamics rather than government intervention, focusing on how products are priced in the market relative to one another without direct government involvement.