Part 3 – Writing: Does protectionism, particularly tariffs and quotas, help or hinder international trade? Protectionism policies are put in place to protect a nation’s domestic economy. Provide examples to help support your answer. You need to provide three examples for full credit.
Topics to help support your answer:
•NAFTA(North American Free Trade Agreement)
•Embargo of Cuban goods (sugar, cigars)
•World Trade Organization
•General Agreement on Tariffs and Trade (GATT)
Any ideas?
Hinder?
how can tariffs help something, it prevents trade from happening
NAFTA is flawed and should be thrown out and replaced with a fairer agreement. Economic protectionism isn’t the way to go. Free trade is an absolute requirement for capitalism to succeed.
hinder
when a country tariffs another country’s goods, that other country will often do the same in retaliation. when imports are taxed that decreases the number of sales the country (exporting the material) will make off the good, so they trade less.
Initially, protectionism helps international trade, because it gives the neophyte industry a chance to establish itself, but in the long run it hinders trade and development. If you want to compete in an international market, you need to be able to do it on a level playing field – that means you need to be able to produce in a cost efficient manner, and provide a competitive product. Protectionism is like the government is keeping everyone at a six year old level. Yes, a young child (or a developing industry) needs help to grow, but there comes a point where they need freedom and independence.