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The Scope and the Potential for the Balance of Payments Employment as Instrument of Protectionism

Student: Volkova Mariia

Supervisor: Marina Glazatova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2017

At the present stage of the development of international trade, the choice of trade policy measures that indirectly meet the objectives of protectionism is an important issue for any state. The key factor affecting the country's foreign economic activity is its balance of payments. At the same time, the mechanism of currency regulation plays an important role in the implementation of the protectionist policy. In this paper, we analyze the practice and the potential of using this mechanism as an instrument of protectionism. The study showed that the use of the mechanism of currency regulation is effective only under conditions of stabilization of the market situation.

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