Question

Protectionism or Free Trade Engagement? What are the arguments for both?  Discuss areas for or against protectionism.

Answer 1

Protectionism: it is type of economy policy to restrict import . Under such policy instrument like tarrif , quota , other regulations are imposed on import of good and services.

It is good for protection of domestic industry from dumping of cheaper imported products. It is good to promote home made goods and services and reduce dependent on other countries.

But it's against free trade or barrier free trade of wto and trade liberalism. It is against the sentiment bof globalisation . It reduce the possibility of diversity of service or goods to enter in the economy.

Free trade management: it is opposite of protectionism policy. As it promote barrier free trade or minimum barrier.

It is good for liberalisation and globalisation sentiment. It promote diversification of goods and services and best possible quality of products.

But some time it may harm local industry as flood of cheaper good may reduce competition and can create destruction in the economy as a result unemployment can be seen.