Difference Between Protectionism And International Trade
In the world of International trade economists and scholars all understand and explain the different views regarding the level of control placed upon trade. International trade is defined by the Business Dictionary as trade between two or more partners from different countries in the exchange of goods and services thus it is simply the exchange of exports and imports on goods and services across international boundaries. The two most contrasting views in the international trade thought bubble include free trade and protectionism. Free trade is believed to open the global market, with a limited amount of restrictions on trade as possible whilst protectionism believes in the concentration of the welfare of the domestic economy by setting limits on the open-market policy.
The term Protectionism is a politically motivated defensive measure that limits unfair competition from foreign industries in way of a policy. Protectionism is implemented by countries when they believe their industries are being affected negatively by unjust competition. There are many different forms of regulations and important measures that belong to protectionism these include high tariffs on imported or exported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws designed to protect domestic industries from foreign take-over or competition. All these regulations restrict trade.
Tariffs are determined on imported goods to
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