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- National Security Argument. National security protectionist arguments pertain to the risk of dependency upon other nations for economic sustainability. learning objectives.
- Infant Industry Argument. Economic markets are inherently competitive and newer economies are vulnerable to their more developed counterparts in other countries.
- Unfair Competition Argument. One of the strongest arguments for trade protectionism is unfair competition emerging due to differences in policy and enforcement ability.
- Jobs Argument. Many policy makers who are proponents of trade protectionism argue that limiting imports will create or save more jobs at home. learning objectives.
Dumping: Selling goods at less than their normal price, especially in the export market as a means of securing a monopoly. Protectionist policies are a highly charged topic in economic debates, as economies work to attain the optimal balance of free trade and trade protectionism to capture the most value.
Instead, the theories show that there are valid arguments supporting both free trade and protectionism. To choose between the two requires a careful assessment of the pros and cons of each policy regime. The argument for free trade presented here accepts the notion that free trade may not always be optimal in terms of maximizing economic ...
The Political Economy of Protectionism. This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research. Volume Title: Import Competition and Response. Volume Author/Editor: Jagdish N. Bhagwati, editor. Volume Publisher: University of Chicago Press. Volume ISBN: 0-226-04538-2.
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One of the strongest arguments for free trade was made by classical economist David Ricardo in his analysis of comparative advantage explains how trade will benefit both parties (countries, regions, or individuals) if they have different opportunity costs of production. Protectionism, in the other hand is an economic policy of
The arguments for protectionism are divided into two groups. Domestic rationales focus on the desired effects of protection on attaining various objectives within the home country. These objectives may be economic, such as addressing domestic market failures, or non-economic, such as promoting national security.
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Mar 2, 2017 · A protectionist policy is any policy that provides an unfair advantage to a home industry versus the international competition. The practice has a long history in economics. Mercantilism – where ...
