International Free Trade Vs. Protectionism Essay

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Yet it has been reviled by human rights associations that blame free trade for a dangerous degrading of workers' rights and its damaging effects on the surroundings. The benefits of free trade can hide its unintentional forces. But actions to protect against its troubles elevate the apprehension of protectionism (Chmielewski, 2011).

Protectionism is the practice of countries to guard domestic industries and their employees by providing subsidies for their manufacture and imposing tariffs on opposing foreign goods. Yet protectionism has been responsible for closing off trade from foreign nations, elevating prices and giving domestic customers less options. A nation that practices protectionism can just as effortlessly be subjected to it by other nations imposing their own import tariffs and awarding subsidies to their industries (Chmielewski, 2011).

Free trade is founded on accords between countries to drop import obstructions, permitting foreign commodities and services to contend on a level playing field with domestic goods. This opens markets for emergent nations and in theory advances their economic circumstances. Developing nations in turn are more able of buying products from industrialized nations. Jobs lost in one business of a developed country can grow in another business. Free trade is destined to progress the economy of all participating countries. The World Trade Organization (WTO) controls free trade accords among member countries (Chmielewski, 2011).

Foreign trade is a difficult matter to get right, and it can take many years, even decades, for free trade programs to pay off. Since the end of World War II, most developed nations have agreed to set a course of dropping tariffs, duties, trade quotas and other overt obstructions to free trade. For the most part, the world financial system has flourished over the last sixty years as trade obstructions have come down. But many countries still utilize protectionist rules to protect preferential industries from the apparent threats of international opposition.

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Recently the Obama administration imposed tariffs on tires made in China subsequent to a trade grievance lodged by the United Steelworkers union (Protectionism vs. Free Trade, 2010).

When one talks about protectionism, they are really talking about the second use of tariffs, which is restriction. When a nation inflicts a tariff for protectionist reasons, it is trying to augment the price of foreign goods in the domestic market to alter customers to purchasing domestically produced alternates. The goal is to try and aid a domestic industry that is opposing against foreign manufacturers and guard them from that foreign competition (Protectionism vs. Free Trade, 2010).

Tariffs traditionally have been utilized for three purposes, revenue, restriction and reciprocity. The first reason, revenue, is to elevate funds for the government. The second one, restriction, means a government would limit imports into the domestic market to assist domestic manufacturers of similar goods. The final reason why nations have utilized tariffs is for reciprocity, which is kind of like negotiating. For example, one would impose tariffs on another nation's goods in order to bargain over their tariffs on their exports (Protectionism vs. Free Trade, 2010).

This debate has been going on for a long time and in all likelihood will continue to persist for many years to come. Which side is right is up to whom you are and what your point-of-view is. Both sides have a good argument but which is best depends on what one is trying to accomplish......

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