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¡¡¡¡In a sense, the new protectionism is not protectionism at all, at least not in the traditional sense of the term. The old protectionism referred only to trade restricting and trade expanding devices, such as the tariff or export subsidy. The new protectionism is much broader than this: it includes interventions into foreign trade but is not limited to them. The new protectionism, in fact, refers to how the whole of government intervention into the private economy affects international trade. The emphasis on trade is still there, thus came the term “protection.” But what is new is the realization that virtually all government activities can affect international economic relations.ª¥

¡¡¡¡The emergence of the new protectionism in the Western world reflects the victory of the interventionist, or welfare economy over the market economy. Jab Tumiler writes, “The old protectionism…coexisted, without any apparent intellectual difficulty with the acceptance of the market as a national as well as an international economic distribution mechanism — indeed, protectionists as well as (if not more than) free traders stood for laissez faire(·ÅÈÎÕþ²ß). Now, as in the 1930s, protectionism is an expression of a profound skepticism as to the ability of the market to distribute resources and incomes to society’s satisfaction.”ª¥

¡¡¡¡It is precisely this profound skepticism of the market economy that is responsible for the protectionism. In a market economy, economic change of various colors implies redistribution of resources and incomes. The same opinion in many communities apparently is that such redistributions often are not proper. Therefore, the government intervenes to bring about a more desired result.ª¥

¡¡¡¡The victory of the welfare state is almost complete in northern Europe. In Sweden, Norway, Finland, Denmark, and the Netherlands, government intervention in almost all aspects of economic and social life is considered normal. In Great Britain this is only somewhat less true. Government traditionally has played a very active role in economic life in France and continued to do so. Only West Germany dares to go against the tide towards excessive interventionism in Western Europe. It also happens to be the most successful Western European economy.ª¥

¡¡¡¡The welfare state has made significant progress in the United States as well as in Western Europe. Social security, unemployment insurance, minimum wage laws, and rent control are by now traditional welfare state elements on the American scene. ª¤

¡¡¡¡1.This passage is primarily concerned with discussing ____.ª¤

¡¡¡¡A) the definition of the new protectionismª¤

¡¡¡¡B) the difference between new and old protectionismª¤

¡¡¡¡C) the emergence of the new protectionism in the Western worldª¤

¡¡¡¡D) the significance of the welfare stateª¤

¡¡¡¡2. What does the phrase “stood for (Para.2)” mean? ª¤

¡¡¡¡A) represented.

¡¡¡¡B) held out. ª¤

¡¡¡¡C) tolerated.

¡¡¡¡D) disapproved. ª¤

¡¡¡¡3.Which of the following statements is NOT a characteristic of a welfare

¡¡¡¡state mentioned in this passage?ª¤

¡¡¡¡A) Free education is available to a child.

¡¡¡¡B) Laws are made to fix the minimum wage.ª¤

¡¡¡¡C) A jobless person can be insured.

¡¡¡¡D) There are regulations for rent.ª¤

¡¡¡¡4.Which of the following inferences is true, according to this passage?

¡¡¡¡A) The economy developed faster in welfare states than in non-welfare states.ª¤

¡¡¡¡B) In the 1930s, protectionism began to rise.ª¤

¡¡¡¡C) The new protectionism is so called mainly because it is the latest.

¡¡¡¡D) Government plays a more active role in economic life in Northern Europe than in Great Britain.ª¤

¡¡¡¡5.The passage supplies information for answering which of the following

¡¡¡¡questions?ª¤

¡¡¡¡A) When did the new protectionism arise?ª¤

¡¡¡¡B) Why is the new protectionism so popular in northern European countries?

¡¡¡¡C) Does the American government play a more active role in economic life than the British government?ª¤

¡¡¡¡D) Why does the government intervene in economic life?ª¤