What is the meaning of "protectionism" in international trade?

The term "protectionism" in international trade refers to the economic policy of restricting trade between countries through the use of tariffs, quotas, and regulations. This strategy is typically employed by a government to shield its domestic industries from foreign competition. By imposing tariffs (taxes on imports), for instance, prices of foreign goods can rise, making domestically produced goods more competitive. This protection is aimed at preserving local jobs, fostering local industry, and ensuring economic stability.

The other options represent contrasting policies or concepts. Promoting free trade agreements would encourage the reduction of tariffs and other barriers to trade, which is the opposite of protectionism. Encouraging foreign investment without restrictions does not align with the protective measures taken in protectionism, as it would allow foreign entities to operate without constraints that could disadvantage local businesses. Similarly, allowing open markets without government intervention reflects a free-market approach that directly counters the protective nature of protectionism.