Reading: Free Trade vs Protectionism
What
is Free Trade?
International Trade: there exists no trade barriers or restrictions such as tariffs, quotas, or embargoes.
Why
is Free Trade Beneficial?
•Increases
consumer utility, choice, and surplus
•Increased
competition
•Greater
efficiency
•Lower
prices for consumers
•Greater
ability to acquire goods and resources
Detriments
of Free Trade
•Dumping
•Survival
of the fittest
•National
security threats
•Domestic
job loss
•Infant
industry argument
•No
dumping
•National
security
•Protect
domestic jobs
•Diversification
of Domestic Economy
Free
Trade vs Protectionism
Free trade vs Protectionism plays out at the national stage in the United States.
Many economists favor Free Trade over Protectionism.
However, there are individual cases where protectionism is warranted and therefore cannot be disregarded altogether.
Last modified: Tuesday, August 14, 2018, 10:17 AM