Protectionism:
Protectionism:
What does this term stand for?
Protectionism refers to government policies or measures designed to shield domestic industries from foreign competition, such as tariffs, quotas, subsidies, or import restrictions. In logistics, protectionism impacts international freight flows, supply chain planning, customs procedures, and transportation costs. Companies need to adjust sourcing, shipping routes, and inventory strategies to comply with protectionist policies while minimizing cost and transit time disruptions. Understanding protectionism is critical for global supply chain risk management and strategic logistics planning.
Characteristics:
- Government measures to protect domestic industries
- Includes tariffs, quotas, and subsidies
- Impacts international freight flows and logistics costs
- Requires adjustment in sourcing and transport strategies
- Essential for global supply chain risk management
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