Difference Between Free Trade And Protectionism

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Discuss the debate on free trade vs protectionism. Discuss both views and give your own opinion. FREE TRADE VS PROTECTIONISM FREE TRADE: Free trade is a policy in which the foreign cheap products are available in the market. It is followed by some international markets in which governments do not restricts imports from, or exports to, other countries. It allows consumers to buy from abroad just as freely as they can buy goods domestically. It means that buyers and sellers from separate economies can trade easily without any barriers, tariffs and prohibitions. In free trade, there is an agreement in which the Governments will specify taxes, duties and other charges to be levied on cross border exchanges of goods and services. They will specify…show more content…
Some people fear that free trade will lead to inequality in some states with a history of ineffective governance. Small family business cannot compete on the global scale, so free trade is not beneficial to local businesses when it comes to profit. With reduced tariffs imposed on imported goods, foreign suppliers can easily lower their costs. And as a result, consumers will prefer imported goods and products over locally produced commodities. Free trade will lead some countries to disregard the environment when it comes to producing products and getting rid of waste materials just so they can compete in the…show more content…
Cons of Protectionism Global competition keeps the price of many goods down. Without that competition prices may go up in many cases. Even if wages increase, they may outstripped by inflation. Access to foreign goods becomes harder. Foreign made goods may become much more expensive or unavailable. Foods may only available at certain times of year when not imported. Free trade allows access to a much wider range of services and goods generally, because a lot of stuff isn't supplied or made on the domestic market. Many of the gains of protectionism tend to be short-lived. If you raise the tariffs on an another country's goods, then it is normally only a matter of time before they retaliate and raise tariffs on your exports. Many jobs will be lost that rely on exports. If you close your border to other countries' products, they will close theirs. Jobs that rely on the internet will also disappear, as the barriers to the free movement of capital and labor go

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