( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH

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PROTECTIONISM (GOOD OR BAD FOR AN ECONOMY?)

    1 Author(s):  NEHA GUPTA

Vol -  5, Issue- 10 ,         Page(s) : 147 - 152  (2014 ) DOI : https://doi.org/10.32804/IRJMSH

Abstract

Abstract: It has been seen in the past that despite the accepted benefits of comparative advantage, international trade has been impeded by various governments around the world through the implementation of protectionist policies such as the infant industry argument, changing comparative advantage and the inflexibility of workers, to prevent dumping and other unfair trade practices, to improve a country’s terms of trade by exploiting its market power, to protect declining industries. But all these policies harm a nation in the long run instead of benefitting it, thus this essay will talk about the counter arguments for all these protection policies and will try to explain why free trade is better than the protectionism, in order to fetch the complete benefits and gains from international trade.

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