Should America encourage free trade with its trading partners or seek a more protectionist approach? Take a stand on this issue. It is not enough to argue BOTH sides of the issue. Support your opinion with good economic reasoning. Who benefits from your approach and who loses? Why? Include impacts on both American citizens and the citizens of the other countries with whom we (U.S.) trade. If your home country is outside the U.S. indicate the possible impact of your stand (favoring either free trade or trade protectionism) on your country. Some common search topics include employment, tariffs, quotas, and free trade agreements.
Free trade or trade protectionism
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Arguments for free trade
- Free trade can lead to lower prices for consumers. When goods and services can flow freely between countries, competition drives down prices. This is good for consumers, as they can get the goods and services they need at a lower cost.
- Free trade can lead to increased economic growth. When countries trade with each other, they create new jobs and opportunities. This can lead to increased economic growth for both countries.
- Free trade can lead to increased innovation. When businesses are exposed to new competition, they are forced to innovate in order to stay competitive. This can lead to the development of new products and services that benefit consumers.
- Protectionism can protect jobs and businesses in the domestic market. When foreign goods are cheaper than domestic goods, it can lead to job losses in the domestic market. Protectionism can help to protect these jobs and businesses.
- Protectionism can help to protect national security. If a country is reliant on imports for essential goods, it can be vulnerable to supply disruptions. Protectionism can help to ensure that the country has a secure supply of essential goods.
Sample Answer
The debate over free trade vs. protectionism has been going on for centuries, and there are strong arguments to be made on both sides.
Free trade is the policy of allowing goods and services to flow freely between countries without government intervention. This means that there are no tariffs, quotas, or other barriers to trade. Free trade is generally seen as a way to promote economic growth and efficiency.
Protectionism is the policy of protecting domestic industries from foreign competition. This can be done through tariffs, quotas, or other barriers to trade. Protectionism is often seen as a way to protect jobs and businesses in the domestic market.