Free Trade & Protectionist
What Is Free Trade?
Free trade is a policy followed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries. Free trade is represented by the European Economic Area and the North American Free Trade Agreement, which have established open markets. Most nations are today members of the World Trade Organization (WTO) multilateral trade agreements.
promotes free trade between the U.S, Canada, and Mexico.
promotes free trade between some Southeast Nations
promotes free trade between European Nations while using euro as currency.
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 everybody.
In times of war we need the best goods produced by the best countries (national defense).
What Is Protectionist?
Protectionism refers to government actions and policies that restrict or restrain international trade, often done with the intent of protecting local businesses and jobs from foreign competition. Typical methods of protectionism are import tariffs, quotas, and subsidies.It mostly wants everything to be created in there country (domestic goods).
is a tax on imports that increases the cost of foreign goods to encourage purchase of domestic goods
is a quantity limit on imports to limit the amount of foreign goods entering a country and encourage the purchase of domestic goods.
is a total ban on trade with a country or countries, usually done for political reasons.
Infant industries need to be protected from foreign competition until they become established.
International trade needs to be limited/restricted to “protect” domestic jobs, trade balance and value of money.
In times of war we should be able to produce our own instead of being too dependent on other countries.