Essay: Trade Protectionism
Discuss and evaluate the validity of argument(s) regarding protection from so-called trade
Trade protectionism involves restriction of trade between economies through a number of ways that include trade tariffs, quotas and government limitation of imports among many others. Globalization limits globalization since the government protects the local industries from external completion hence not allowing free trade with other economies.
The major reason for protection of trade within an economy is to ensure that the good or improved standards of living is maintained and the economy . trade protectionists believe that the foreign goods need to be taxed before entering the domestic markets otherwise they will be at an advantage. In this case, the economies prefer to rely on the taxation rather than revenue from the tariffs on foreign goods.
Another reason for trade protectionism is to protect the infant industries. They argue that if the infant industries are not protected and allowed to grow and utilize the the economies of scale as their production increases. If the infant industries are not protected, then the fierce competition form the already established global corporation will force them to close. These infant industries need to be protected to learn about the industry infrastructure and develop other skills that will enable them to become efficient in production and eventually be able to compete at the global level.
The trade protectionists also argue that if trade is not protected, them social evils will develop , more so, the government has the responsibility to protect its citizens. Additionally, they also argue that the comparative advantage has lost its meaning due to the integration of the global trade