Economic Policy Questions
Free trade and protectionism are two contrasting approaches to international trade.
Free trade refers to a policy that promotes the exchange of goods and services between countries without any barriers or restrictions. It advocates for the removal of tariffs, quotas, and other trade barriers, allowing for the free movement of goods and services across borders. The main objective of free trade is to maximize economic efficiency, promote competition, and enhance consumer welfare by providing a wider variety of goods at lower prices.
On the other hand, protectionism is an economic policy that aims to shield domestic industries from foreign competition by imposing barriers to trade. These barriers can include tariffs, import quotas, subsidies, and other measures that restrict imports and promote domestic production. Protectionism is often implemented to safeguard domestic industries, protect jobs, and maintain national security. It prioritizes the interests of domestic producers over the benefits of international trade.
In summary, the key difference between free trade and protectionism lies in their approach to international trade. Free trade advocates for open markets and unrestricted trade, while protectionism seeks to protect domestic industries by imposing barriers to trade.