Beggar-my-neighbor Policy -

Protects unproductive industries that might otherwise need to innovate to survive. Summary Review

Increases the competitiveness of exports through currency tactics . Major Drawbacks (Long-term) beggar-my-neighbor policy

Trading partners usually respond with their own tariffs, leading to "trade wars" . The phrase was likely coined by writer O

The phrase was likely coined by writer O. Henry in 1904, though it is based on an older card game of the same name . High taxes on imports to make foreign goods

Reduces overall global economic welfare and creates market volatility .

High taxes on imports to make foreign goods more expensive than local ones.

💡 While tempting for politicians looking for a "quick fix" to domestic unemployment or industrial decline, beggar-my-neighbor policies are almost universally viewed by economists as mutually destructive in the long run. They provoke retaliation and shrink the "total pie" of global wealth . The WTO: Theory and Practice