Question

4. The first long public debate about the merits of “Protectionism”, versus “Free Trade” policies took place in Britain around the issue of the “Corn Laws’. Please discuss the arguments made on both sides, and why eventually Free Trade won.

Answer 1

Arguments in favor of the protectionism, said that this policy will protect the domestic producers and it will help creating jobs for the farmers and other labors who work as prescribed in Corn laws. To counter it, argument in favor of  the free trade, said that it will bring efficiency, quality and consumers will get better products at lower price. Consumption will also increase and it will support overall economy. Protectionism relied that jobs will be saved, but it actually removed jobs in other sectors as people spent a lot on grains, but spent very less on other products and industries got closed down. It became the basis to let free trade apply and domestic producers become more efficient. Further, applying tariff or quota, made other nations bring similar action against the Great Britain. It also made more harm than the gain when protectionism was applied. Hence, Free trade started taking place and it brought more gain than the losses and producers became more profitable in Great Britain. It made free trade to win the debate.