Manon's Econ Blog

Free trade VS protectionism

Posted on: October 6, 2010

There are different arguments for both free trade and protectionism. Different people argue different things, depending on their interests. I agree with both to some extent.

Protectionism is good in the sense that it helps people to have a job and be able to live in normal conditions. It saves individual companies and we cannot forget about them. It is not so much an economic point of view, but more of a personal and political point of view.

Cheap imports and free trade will benefit the world as a whole and other economies, but I am not sure how great it the benefit compared to how badly the poor people will suffer with free trade. If the money and growth from free trade was spread equally between people I will agree with free trade, but in the real world it does not so the distinction between how great free trade is is not as clear.

I agree with free trade because it helps the whole economy, and in some ways it will help even the bottom part of the society. The economy will be able to grow and that is important because a better standard of living for the country is always good. Nevertheless, not all people will benefit from the growth so I am not convince with the greatness of free trade that economics agree upon.

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2 Responses to "Free trade VS protectionism"

I agree with you that they’re good for countries to some extent. Maybe you can list the pros and cons for each side 🙂

Manon,

I agree with Abby, there are pros and cons for free trade and protectionism. For instance, a pro for free trade is to allow advancements of the goods because of the competition of free trade. On the other hand, a con for free trade is that domestic producers will not be able to compete with some of the more efficient domestic producers. A pro for protectionism is that it will benefit the domestic producers who are losing out from the more efficient world producers. Whereas a con will be that there will be negative externalities produced by the less efficient producers such as pollution.

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