Economics Protectionism Questions Medium
Protectionism and free trade are two contrasting approaches to international trade.
Protectionism refers to the economic policy of imposing restrictions on imports in order to protect domestic industries and promote domestic production. It involves the use of various trade barriers such as tariffs, quotas, subsidies, and regulations to limit foreign competition. The main objective of protectionism is to shield domestic industries from foreign competition, preserve jobs, and promote economic growth within the country. Protectionist measures are often implemented to safeguard national security, protect infant industries, and maintain a favorable balance of trade.
On the other hand, free trade is an economic policy that advocates for minimal or no restrictions on international trade. It promotes the exchange of goods and services between countries without the imposition of trade barriers. Free trade is based on the principle of comparative advantage, which suggests that countries should specialize in producing goods and services in which they have a lower opportunity cost and import goods that can be produced more efficiently by other countries. The main objective of free trade is to maximize economic efficiency, increase consumer choice, and foster global economic integration.
In summary, the key difference between protectionism and free trade lies in their approach to international trade. Protectionism aims to protect domestic industries through the use of trade barriers, while free trade advocates for the removal of barriers to promote unrestricted trade and economic cooperation between countries.