What is Free Trade?

International Trade: there exists no trade barriers or restrictions such as tariffs, quotas, or embargoes.


Why is Free Trade Beneficial?

•Increases consumer utility, choice, and surplus
•Increased competition
•Greater efficiency
•Lower prices for consumers
•Greater ability to acquire goods and resources

Detriments of Free Trade

•Dumping
•Survival of the fittest
•National security threats
•Domestic job loss

Benefits of Protectionism

•Infant industry argument
•No dumping
•National security
•Protect domestic jobs
•Diversification of Domestic Economy


Free Trade vs Protectionism

Free trade vs Protectionism plays out at the national stage in the United States.

Many economists favor Free Trade over Protectionism.

However, there are individual cases where protectionism is warranted and therefore cannot be disregarded altogether.






Last modified: Tuesday, August 14, 2018, 10:17 AM