Common Arguments For and Against Trade Restrictions
Common Arguments For and Against Trade RestrictionsWhat are some of the common arguments for and against trade restrictions? Choose a position and describe why you think it is valid. Respond to a classmate who has selected a position that is different from yours. Did they provide valid rationale for their position? Why or why not?Arguments for trade restrictions include but are not limited to:Trade restrictions protect domestic (home) industries from international competitors.
Import restrictions reduce imports and secure local markets.
Government funding to exporters increases exports and helps create a trade surplus that protects the job market in local areas.
Smaller companies would be less vulnerable from free trade.
The growing reliance on imports may put national security at risk.
Protect comparatively disadvantaged industries that are vital to national defense from import competitors to ensure that products and services i.e. footwear, machinery, bombs etc. will be available during wartime.
Prohibiting trade with offending nations can be used as a form of punishment, deterrent or retaliation for intolerable behavior.
Arguments against trade restrictions include but are not limited to:Trade restrictions could prevent the free flow of products and services and harm a nations welfare.
Consumers would lose the advantages of free trade i.e. lower prices for products and services.
International trading companies would not be able to expand their efforts to sell products and services to developing nations.
Nations would not be able attain a higher level of living by specializing in import products and services.
Companies would not be able to obtain a comparative advantage by importing products and services they normally have a comparative disadvantage in local markets.
In my personal opinion, though trade restrictions may cause me as a consumer to have to pay higher prices for certain products or services, I would have to agree with the...