Protectionism And Liberalization

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When a country opens up its economy, the outside world is able to trade with the country because barriers such as tariffs (taxes on traded goods), tax laws, foreign investment rules, restrictions and regulations is relaxed for foreign countries to invest in them. The goal is to have unrestricted capital flowing in and out of the country to boost growth and efficiencies within the country.

China opened its economy in 1978. They have high productivity, low labour cost and relatively good infrastructure which makes them the global leader in manufacturing. Dictatorship means that workers in China are highly accustomed to doing whatever is said by the rulers and following orders to fulfil their duty to the country. In comparison, India opened their
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By the 21st century, India had progressed towards a free-market economy, with a significant reduction in state control of the economy and increased financial liberalisation. In turn there has been an increase in life expectancy, literacy rates and food security.
Instead of opening up its economy, a country may also choose to keep its economy closed. This is known as protectionism. Similar to economic liberalization, protectionism has both its upsides and downsides, and impacts various parties differently. Our antithesis statement is that it is more beneficial for a country to keep its economy closed.
Protectionism protects certain companies or industries that are important to the country. When tariffs are implemented by these countries, the overseas competitors will be discouraged to trade with the local companies. Hence, with less competition for the local companies, many would start buying products from their own country made by the local companies. This would generate more profit for these companies.
Through that, the country is able to develop new industries which will be able to add to the country's economic growth, create more jobs for the people, increase the overall wealth of the country and lead to a better balance of
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To research and develop would cost a lot time, effort and money, especially since they cannot depend on anyone else to develop the technology. They are all by themselves.
Protectionism can cause retaliation reaction from other countries, ruining the relationship of the two nations. For example, Country A is angered and retaliates by raising trade barriers so that Country B (under protectionism) would have a harder time exporting goods and profiting from it. This hostility harms both countries’ economy as they are unable to carry out import and export without paying tariffs and also reduces trade activity in the long run.
Protectionism is more efficient under the concept of comparative advantage for a country to focus its production on those goods for which it has an advantage in production and import those goods that it does not. Thus, consumers in the domestic market may have to pay a premium for a better produced import or be denied the ability to acquire it at all. This may reduce the standard of living of citizens.
In India, for example, protectionism is beneficial for Infant Industries, uncompetitive sectors and businesses because it protects them without exposing them to

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