Essay about Trade Protectionism Has A Huge Area Of Debate

Essay about Trade Protectionism Has A Huge Area Of Debate

Length: 1407 words (4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The trade protectionism has been a huge area of debate in recent years over the pros and cons to America. The growth of business since the recession is all about the supply and demand. In order for America to protect their industries they needed an avenue that would give their young industries time to develop, thus entered the idea of Trade Protectionism. What exactly is trade protectionism?
Trade protectionism is a defensive measure, usually politically motivated, used by countries when they are having their industries decline due to unfair competition from foreign counterparts, this is done mainly through the use of tariffs or tax on imported goods. This strategy usually works short term, however long term it usually causes damage to the protected industry by making them less competitive in the world market. (cite definition) There are many positive benefits from Trade Protectionism one being that it allows newly formed industries time to be able to figure out how to produce the good efficiently and secondly gives them time to develop their own competitive advantages. The third thing Protectionism does is that it temporarily creates jobs for domestic citizens. (cite advantages of tp)
Fourthly, some governments provide subsidies and loans to businesses that are failing to compete against their foreign competitors. These actions restrict the free market by offering benefits to domestic companies while imposing consequences upon foreign businesses.
Lastly, Trade Protectionism benefits businesses by creating trade barriers. Tariffs discourage foreign businesses from investing in your country. Consumers don 't see the tax. They only see the price that is attached to the item. The increase price in turn discourages consumers from pu...


... middle of paper ...


...untries impose tariffs and trade barriers it initially makes the country poorer. True, at first businesses will prosper and workers will generally have higher wages than they otherwise would under free trade, but consumers will suffer by paying higher prices. Consumers don 't wait for prices to increase to purchase what they need. They wait for prices to fall then they buy the products that they need.

When it comes to the Free Trade versus Protectionism debate, arguments for protectionism usually outline what is fair and not what is right. It should not be about what is fair, it should instead be about which policies make the economy better or worse as a whole. Competition is better for the economy. If a business or country cannot compete against a foreign competitor in an industry, then maybe it shouldn 't be in the business of providing those products (cite book).

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Analysis of Arguments For and Against U.S. Trade Protection

- In this paper I will summarize the arguments for and against trade protection for United States industries. Among the measures that can be used to restrict foreign trade are tariffs and trade quotas. Industries can also get nontariff barriers, miscellaneous legislation which give domestic products an advantage. In general, experts agree that restricted foreign trade benefits workers and domestic businesses, while under free trade consumers have a greater quantity and quality of choices available to them....   [tags: Economics, International Trade]

Better Essays
1024 words (2.9 pages)

Free Trade Vs. Protectionism Essay

- The History of trade and its relationship to politics, the world’s poor, and the worlds wealthy is deep and extensive. The ideas of free trade vs protectionism have been a part of American history since its origination, but have become most prevalent in its history since the 1800s ( ). The political arguments surrounding it are fierce and passionate, and tend to sway from one side to the other with extreme regularity. There are many schools of thought and often time specific groups of people tend to constantly support the same theory, however the lines tend to get blurry in politics and the publics opinion....   [tags: Poverty, Agriculture, Food, International trade]

Better Essays
1163 words (3.3 pages)

Essay about International Trade and Protectionism

- International Trade and Protectionism The benefits of globalization and open trade to any country’s economy are immense since international trade agreements and unilateral liberalization allow for the adoption of low tariffs. However, these benefits do not cut across the entire economy and it is often the case that special interest groups are perpetually attempting to use government power to shield themselves from competing imports. The mechanism these interest groups use to enforce such policies is often termed regulatory protectionism (Sykes 24)....   [tags: benefits of globalization and open trade]

Free Essays
533 words (1.5 pages)

Protectionist Policies and Canadian Trade Essay

- Should We Use Protectionist Trade Policies to Help Shield Canadian Industries from Foreign Competition. Over the last decade, whether or not we should use policies that shield our domestic businesses from the foreign competitors became a concerned issue for Canadians. Some believe that these policies are to be not to be used in Canada, while others think the opposite. Personally, I believe that Canada should terminate protectionism. First, it will decrease Canada’s competitiveness, second, protectionism has already failed, and lastly, even though free trade makes some Canadians lose jobs now, it prevents a worldwide depression....   [tags: International Trade, Canada]

Better Essays
515 words (1.5 pages)

Trade, Protectionism, and the Developed Countries Essay

- TRADE, PROTECTIONISM AND THE DEVELOPED COUNTRIES The World Trade Organization refers to an organization formed in 1995 with a stated goal of supporting and liberalizing international trade. Although it is in line with free international trade it allows governments to impose short term protectionist measures under specific circumstances (Shrybman, 2001). Developed countries have imposed remarkable protectionist measures since 1975 despite the fact that they have joined WTO (Takatoshi and Krueger, 1993)....   [tags: economies, export, tariff]

Better Essays
1724 words (4.9 pages)

Protectionism and Free Trade in America Essay

- The argument regarding protectionism and free trade in America can be traced back to our Founding Fathers. The first significant legislation passed by the First congress in 1789 and signed into law by President Washington on July Fourth was a protectionist tariff that provided for over 90 percent of the revenues to operate the new government and encouraged the building of industries and development of family farms. In contrast, Benjamin Franklin, who understood the danger of trade restrictions said, “No nation is ever ruined by free trade.” The argument has continued throughout history and is a major issue in current politics....   [tags: essays research papers]

Better Essays
2094 words (6 pages)

Free Trade vs Protectionism Essay

- 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....   [tags: Economics Business]

Better Essays
3969 words (11.3 pages)

Case: Antidumping Measures as Protectionism Essay

- Case: Antidumping Measures as Protectionism Dumping is defined as the sale of a product for export at a price that is lower than the price charged by the same firm in its home market or at a price below costs of production. Dumping can happen for a number of reasons. Firstly, it can be maintained as a short-term predatory pricing strategy by exporters designed to put competitors in an export market out of business. Also, it can be the result of market intervention or state subsidy of a company’s production that enables it to artificially lower the cost of export....   [tags: Economics Protectionism]

Free Essays
1433 words (4.1 pages)

Essay Globalization: An Argument For Limited Protectionism

- Abstract Globalization has changed the way that everyone conducts business. Throughout history, man has constantly increasing its scope from a local agrarian economy, to cottage industries, to domestic industry, to the newly globalized international framework of commerce that exists today. This progression is quite logical, as it ever increases the efficiency at which products are produced and services are rendered. However, when put in context, the theoretical maximization of efficiency may have dire consequences on independent nations....   [tags: Outsourcing, Offshoring, Free Trade]

Better Essays
1636 words (4.7 pages)

Trade Protectionism Put to the Test Essay

- Trade Protectionism Put to the Test The idea behind trade protectionism as policy is that domestic industry cannot or should not have to compete with imports from foreign producers and that domestic workers’ jobs are at risk when trade is unrestricted. Most economists, and a large portion of the public would agree when looking at the big picture that free trade is positive for importers and exporters, as well as consumers. The very basic theories of comparative advantage, specialization and trade make a compelling argument for trade without barriers....   [tags: Essays Papers]

Better Essays
1946 words (5.6 pages)