Free Trade vs Protectionism

opinion Essay
3969 words
3969 words

Free Trade vs Protectionism

One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy of the United States. However, what effects does this policy have for the international market and the other respective countries in this market? The question is not as complex as it may seem. Both sides have strong opinions representing their respective viewpoints, and even the population of the United States is divided when it comes to taking a stand in the issue. After examining all factors on the two conflicting sides, it is clear that protectionism, from the side of the United States, is the only way the American industrial economy can expand for the benefit of its citizens and for its national welfare.

The economy needs to get itself out of the huge deficit hole that it has created for itself,and lean towards protectionist measures.

The dictionary definition of free trade states it as a policy of allowing people of one country to buy and sell from other countries without restrictions. This idea originated with the influential British economist, philosopher, and author of The Wealth of Nations, Adam Smith. He inspired the writings of great economists such as David Ricardo, Karl Marx, Thomas Malthus, and others. According to Smith, specialization and trade is the best solution to create a flourishing American economy, with its industries ruling the economic world.

William H. Peterson, holder of the Lundy Chair of ...

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... age of political correctness. It is true that the global market has already expanded, but it is never too late for the United States to begin shutting its doors to the free market.


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H.W. Wilson Company.

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Greenhaven Press Inc.

3. Lenway, Stephanie Ann. (1985). The Politics of U.S. International Trade.

Boston: Pitman Publishing Inc.

4. Lieberman, Sima. (1988). The Economic and Political Roots of the New

Protectionism. New Jersey: Rowman & Littlefield, Publishers.

5. Spero, Joan Edelman. (Ed. 4) (1990). The Politics of International Economic

Relations. New York: St. Martin’s Press, Inc.

6. Woronoff, Jon. (1983). World Trade War. New York: Praeger Publishers

In this essay, the author

  • Explains that the sugar act imposed import duties on foreigners.
  • Explains that d’estaing was looking for a solution after the demise of the bretton woods system.
  • Opines that us industries will benefit from free trade, but consumers will as well.
  • Explains that the main initiative is to enhance prosperity in all three countries, which encompasses 370 million people.
  • Argues that lindsey's statement is untrue. import barriers are falling in different parts of the world, including japan. between 1968-1988 import growth has skyrocketed
  • Explains that the percentage of gdp derived from trade doubled to 14.4 percent in the us, gained an average of 63 percent, and remained constant in japan.
  • Describes the labor costs of the us and west in 1970.
  • Explains that by 1986, these figures had fallen to 20 percent and 2 percent greater than japan.
  • Explains that only 30,000 of more than 3.5 million patents were held by citizens of developing countries.
  • Analyzes how trade barriers in twenty-one us industries saved 191,00 jobs at a cost to consumers of $170,00 per job.
  • Opines that the united states is the only country to support free trade, while other countries are putting up barriers.
  • Opines that the us did not understand the foreign trade game and lost. nafta's main aim was to enhance prosperity in all three countries through free trade policies.
  • Opines that us industries must find the best of the situation, since foreign monopolies are illegal under sherman and clayton acts. product differentiation provides varying degrees of new and different products while insuring that quality is high.
  • Opines that cheap labor makes more profit due to unfair competition.
  • Opines that the us should learn to maximize its production by making it more efficient. low-income nations would be helped by developing countries such as the united states.
  • Argues that free trade is the only way the american industrial economy can expand for the benefit of its citizens and for its national welfare.
  • Explains that participants created three organizations to help regulate the international economy: the international monetary fund (imf) and the general agreement on tariffs and trade (gatt).
  • Explains that the world bank, the international finance corporation, and the bretton woods agreement captured the cooperation of the global community due to their commitment to a free market and economic freedom.
  • Argues that protectionist movements have never succeeded in the past, which means that they will not succeed in today's economy. peterson uses positive analysis by looking at "what will happen" to the us economy and the international economy, rather than using normative analysis.
  • Analyzes how the uruguay round addressed explosive issues such as intellectual property rights, non-tariff barriers, agricultural subsidies, and trade in services.
  • Explains that the collapse of the bretton woods system is a direct result of nixon's decision to shut its doors to economic trade.
  • Illustrates how tariffs, export subsidies, and quotas interfere with the movement of goods and services around the world.
  • Argues that retaliation is a possible reaction to protectionism, but unemployment is not likely to occur.
  • Explains that tncs seek cheap labor, low taxes, and few regulations. they drain the economy of the underdeveloped country, lowering their gdp.
  • Explains the prisoners' dilemma, where two prisoners are accused of a crime and given light sentences, while the other gets heavy sentences. the dominant strategy yields the best results regardless of the opponent's strategy.
  • Opines that a lassiez-faire attitude is not the solution to the problems the united states faces. the us must ask itself if free trade policies are in its best interests.
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