Free Trade Vs Protectionism Essay

960 words - 4 pages

Arguments for Free Trade among Nations as opposed to
Arguments for Protectionism

In economics, trade, both nationally and internationally is a subject that is highly debated. Trade affects every one in every nation, has a significant impact on a country’s standard of living and can be used to foster new ideas and products. There are currently two opposing policies of how to conduct trade, protectionism and free trade, also called laissez-faire. A county’s comparative advantage at producing certain products causes many debates over why one way of trade is better than another.
Tariffs, embargo’s and quota’s that are put on trade are forms of protectionism, which is the restriction of ...view middle of the document...

National security is a highly debated reason for protectionism.1 In the event of conflict or war between other nations, that may have comparative advantages over each other in important industries such as steel and agriculture, the threat of stopped trade could threaten the survival of each government. Putting high tariffs and quotas on such products may ensure their continued production domestically and availability in time of need. Free trade is the opposite of protectionism and for every one of the arguments provided in favor of protectionism there is a counter argument in favor of free trade.
Free trade is a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs or subsidies.4 Innovation is best motivated by competition, and free trade allows competing business’ to find new technologies and better ways to provide what they produce.6 Increased productivity as a result of innovation allows normal citizens to afford more products and raise their standard of living.5
A moral argument for free trade is that it could be good for the environment.7 Free trade would allow for the production of goods to be made in the regions that are most environmentally appropriate and since more natural resources would be used, pollutants from fossil fuels such as coal and oil would decrease.
Economic growth is often cited as a reason for free trade. With free trade, meaning no tariffs, embargos or quotas, goods and services are more widely distributed which increases their demand. As an economy grows so does its demand for goods and services, and the increase in the demand can create new businesses and expansion of existing ones. The new businesses and expansions increase the demand for more jobs and better pay for its workers.6
When there are no protections or restrictions on...

Other Papers Like Free Trade vs Protectionism

Travels of a T Shirt Essay

590 words - 3 pages such a simple process as the manufacturing of a t-shirt has huge ramifications in the global market, and other global trade policies. On the topic of the question posed to us on the syllabus, if I were running for an NC senate position, I would 100% support protectionism. Although some may make the argument that it would be better to not support protectionism to allow NC to grow away from the textile industry and find a new industry, in my opinion

Free Trade Agreement Of Americas Essay

2587 words - 11 pages confounded the predictions of laissez-faire economic ideologies by gaining market share at home and in some cases abroad, contributing to job creation and reinvigorating American competitiveness." The Bush Administration has the above issues to contend with whilst attempting to convince companies and industries that free trade is the only way to go. Offering protectionism to these organisations will only hinder and impinge the trade agreements, almost

International Trade Report

1617 words - 7 pages international trade should be approached. This would ultimately lower the cost of purchase to the consumer, and encourage foreign trade. Utilizing a mix of these two approaches to maximize overall benefit to the consumer and the overall economic health of the country is the optimal choice. Comparative advantage (Applying International Trade Concepts Simulation) is something that is used to decide the balance of protectionism vs. free-trade

Trade Protectionism

1275 words - 6 pages Trade Protectionism Report Trade protectionism is the measure adopted by countries to restrict international trade to prevent free movement of goods and services between countries. Basically, protectionism means sheltering local industries from foreign competition through imposition of tariffs, trade barriers and other protectionist measures. Why does government need to protect domestic industries? 1. Without protection, uprising industries

Critically Evaluate the Potential Justification for Protectionism

1843 words - 8 pages . (1987) Is Free Trade Passe? Economic Perspectives, Vol 1 No.2 p131-144 Baldwin, R.E. (1969) The Case Against Infant-Industry Tariff Protection, The Journal Political Economy, Vo. 77, Issue 3 p295-305 O'Sullivan, A. & Sheffrin, S.M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p.452. Fouda, R.A.N. (2012) Protectionism and Free Trade: A Country’s Glory or Doom? International Journal of Trade

End Protectionism

3558 words - 15 pages analysis shows that most if not all protectionist measures actually serve to limit economic growth. The arguments given to justify protectionism range from the poorly-disguised corporate handout to downright racism, while the few good reasons for it such as to protect 'sunrise' or developing industries do not apply to the United States. Section 2: What is Protectionism? Protectionism, defined simply, is any form of barrier to free trade that a

Trade Simulation Report

1610 words - 7 pages main issues involve globalization and protectionism. Globalization is the process of countries becoming open to the idea of foreign investment and trade. Supporters of globalization believe that free trade negatively affects the cultures of other countries. Imports of clothing, music and other goods to developing countries from developed high-income countries often replace local products and are integrated into their lifestyle. Globalization also

Economics Case

3579 words - 15 pages . Legislation is operating under the belief that “free trade in services is bad and protectionism is good and without cost”. ( (so what is the result of this ' cant just state it) ' Tariffs and Quotas As seen in the graph in Appendix 1.3 a tariff is imposed and the domestic price rises from the world price (P*) to the world price plus the tariff (P*+t). This allows the


852 words - 4 pages devastating consequences to the economy. Governments around the work most allow free trade with the legal agreements. To protect Domestic producer in the United Stated, otherwise many would be in jeopardy to lose customers and run out of business, which can create a mass unemployment rate in the country due to purchasing of cheap made product from foreign competitors. The protectionism trade barrier not save American jobs, from my own opinion

Regional Trade Agreements. Are They Building Blocks Or Stumbling Blocks?

1351 words - 6 pages Regional economic integration means agreements between countries in a geographic region to reduce / remove barriers to trade. Rationale is consistent with comparative advantages.Building Blocks:1. Provides impetus for trade talks. Regionalism can even help to promote liberalization in small or developing countries that may hold doubts about freer trade and the benefits it holds for them.2. Free trade in regions is better than none at all. At

Midterm Exam

747 words - 3 pages The General Agreement on Tariffs and Trade (GATT) was created in 1946, right after the conclusion of World War II. The GATT emerged as the means of promoting "free trade", which was deemed to be essential to peace. Its purpose was to persuade countries to dismantle their protectionist systems by reducing and eventually eliminating tariffs for member states. Many argue that trade between states who produce base on the idea of comparative

Related Essays

Free Trade Vs Protectionism Essay

3055 words - 13 pages Content page pages Question one 1.1 identify all stakeholders 2 1.2 Unitarian perspective 3 1.3 Maxim of duties 1.4 clashes of rights 4 1.5

Protectionism Essay

656 words - 3 pages ends up hurting the people it is intended to protect and often promotes free trade as a superior alternative to protectionism. Tariffs, non-tariff barriers and other forms of protection serve as a tax on domestic consumers. Moreover, they are very often a regressive form of taxation, hurting the poorest consumers far more than the better off. Protectionism is frequently criticized by mainstream economists as harming the people it is meant to

Operations Management Essay

3744 words - 15 pages / [Accessed 30 August 2014]. Chmielewski, T., 2012. Free Trade Vs. Protectionism. [Online] Available at: [Accessed 31 August 2014]. Cronin, R., 2009. Exploiting Natural Resources, s.l.: Stimson. Froning, D. H., 2000. The Benefits of Free Trade: A Guide For Policymakers. [Online] Available at:

Impact Of Protectionism Trade Policy On Trade

5363 words - 22 pages Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow (according to proponents) fair competition between imports and goods and service produced domestically. This policy contrasts with free trade, where government barriers to trade are kept to a minimum. In recent years, it has become closely aligned