Free Trade and Protectionist
By: Aleem Jones
Pros and Cons of Free Trade
3: It creates employment opportunities.
4:It allows for foreign countries to exchange gain.
5:It is a key to economic growth.
Pros and Cons of Protectionist
2: Can Create More National Pride In Products Created
3:Can Lead To A Trade War
4: Can Reduce Our Standards of Living
5:May Not Actually Protect Some Jobs
Advantages and Disadvantages of protectionist
The Disadvantages of protectioinist is trade protectionism weakens the industry. Without competition, companies within the industry won't innovate and improve their products or services. There's no need to. Eventually, consumers will pay more for a lower quality product than they would get from foreign competitor.
Advantages and Disadvantages of Free Trade
- Increase economic growth. The U.S. Trade Representative Office estimates that NAFTA increased U.S economic growth by .5% a year.
- Lower government spending. Many governments subsidize local industry segments. When these are removed after the trade agreement, those funds can be put to better use.
- 3:More jobs. As local economies grow, so do job opportunities. Many provide job training as well
- 1: Poor working conditions. Multi-national companies relocate jobs to emerging market countries that don't have adequate labor protections
- Reduced tax revenue. Without import tariffs and fees, many smaller countries must find ways to replace that revenue.
- 3:Increase jobs outsourcing.