Trade Protectionism: The Pros And Cons Of Trade Protectionism

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

There are multiple examples throughout the entire globe with countries that have prospered. Everyone benefits from free trade. When countries 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