Protectionism Vs. Free Trade

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Protectionism vs Free Trade The model of a country’s trade regulations, rules, and openness to trade can generally be classified under two ordeals, which are protectionism and free trade. A country that chooses to have a closed barrier of entry for imports and generally refuses to take part in the world trading system is said to be practicing protectionism, which is when a country doesn’t open their economy for the world (Hill, 2015). On the other hand, a country that welcomes foreign firms and more open trade is side to be free trading and openly participates in the world trading system and the growing notions of the globalism. Both these economic trade philosophies are seen in countries around the globe, and each has their set of…show more content…
Nations that don’t trade heavily participate in massive importing often have to resort to increasingly their own economic productivity in order to provide the essentials needed for that country’s citizens and operations (Protectionism, 2017). Often times tariffs, trade quotas, and a lot of bureaucratic regulations are in place to discourage foreign investors and excessive imports. increased Increasing economic productivity often means growth of the private sector as mentioned because of the insource more products and services, which indicates more employment and economic expansion (Protectionism, 2017). In terms of more specific business factors, these countries often have more internal talent and can utilize it more effectively, and therefore foster and manage innovation and organizational processes in a more efficient manner.
Countries that adopt protectionism typically experience trade surpluses and have extensive financial reserves, and are very productive, powerhouses for innovation, and are valuable players in the international trade business. They also have lower unemployment levels and typically are much more self-sufficient, relying less on the mercy of more unstable economic practices such as inflation to prop their economy (Hill, 2015). On the surface, it would appear that
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