Question

Free trade proponents and protectionists have drastically different views regarding trade. Which side of the debate do you side with, and why? When answering this question, consider the economic impact of tariffs.

Answer 1

Answer:

Protectionist.

Explanation:

Proponents of protectionist argue that allowing free trade will kill local industries and also make the country for dumping ground for cheaper foreign made goods.

They suggested imposition of heavy tariffs so as to protect local industries. Protecting local industries will create jobs for the unemployed thereby making them relevant to the society.

By imposing high tariffs, foreign companies producing those goods would pass the burden to final consumers in form of high prices hence discourage consumers from buying them. Few of those goods will then enter the country due to the heavy duty and low patronage.

Imposition of heavy tariffs will also generate more revenue for the government which will be used to financed basic infrastructures like housing, sewage system, electricity, etc.

Although proponents of free trade are of the opinion that there should be no restriction to trading among countries. They also suggested the removal of high tariffs from goods exported from other country.

The above seems good, yet the consequences outweigh the gain therein. For instance, removal of duty or tariff would result in revenue loss for the government hence unable to finance basic infrastructures. The country will also become dumping ground for imported goods because they will sold at lower price due to it's poor quality.