Free Trade and Protectionist

By: Aleem Jones

Free Trade

is a policy followed by some international markets in which countries governments do not restrict imports from or exports to other countries.For example free trade modified by the European Economic Area and the North American Free TradeAgreement, which have established open markets.

Protectionist

is the economic policy of restraining trade between states and countries.for example Tariffs on imported goods, restrictive quotas, and a variety of other government regulations. Theses are fair competition between imports and goods and services.
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Pros and Cons of Free Trade

1:onsumers will have options and can benefit from lower prices.rading 2:countries can benefit from competitive advantage.

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

1: Provides More Jobs In The United States.

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 Advantages of protectionist is If a country is trying to grow strong in a new industry, tariffs will protect it from foreign competitors. This allows companies in the new industry time to learn how to produce the good efficiently, and develop their own competivie advantages.

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

1: Advantages:
  1. Increase economic growth. The U.S. Trade Representative Office estimates that NAFTA increased U.S economic growth by .5% a year.
  2. 2:
  3. 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.
  4. 3:More jobs. As local economies grow, so do job opportunities. Many provide job training as well
  5. Disadvantages:
  6. 1: Poor working conditions. Multi-national companies relocate jobs to emerging market countries that don't have adequate labor protections
  7. 2:
  8. Reduced tax revenue. Without import tariffs and fees, many smaller countries must find ways to replace that revenue.
  9. 3:Increase jobs outsourcing.