Free Trader & Protectionist

Free Trader

Most economists argue that free trade improves economic efficiency and offers consumers of all nations a wide variety of goods at the lowest possible prices.

Infant industries need to be immediately exposed to foreign competition to make them stronger and more competitive. International trade allows for specialization which means higher quality and lower prices for EVERYONE. In times of war we need the best goods produced by the best countries (national defense).

5 Trade Barriers

Tariff is a tax on imports that increase the cost of foreign goods to encourage purchase on domestic goods. Quota is a quantity limit on imports to limit the amount of foreign goods entering a country and encourage purchase of domestic goods.Embargo is a total ban on one or more products from a particular nation. Embargoes are often motivated by political, rather than economic concerns. Standards are rules about the quality of imported goods. Subsides involve direct financial aid, often through tax credits or tax deductions to certain domestic industries.