Learning Objectives: International Trade LO4: Describe why some groups win and others lose as a result of freer trade, and explore trade restrictions LO5: Identify some arguments against free trade CHAPTER © 2012 McGraw-Hill Ryerson Limited

Strategy industry argument a country’s strategic industries should be offered protection so the country does not become dependent on foreign manufacturers Infant industry argument certain “infant” industries should be protected until they are sufficiently mature to take on foreign competition 13-2© 2012 McGraw-Hill Ryerson Limited LO5 Arguments Against Free Trade

Cultural identity argument free trade brings with it mass production and standardization, which may harm the importing country’s sense of individuality and cultural identity Environmental and labour standards the environmental and labour standards of developed nations may be eroded as they try to compete with countries whose standards may be considerably lower and who may have a cost advantage as a result 13-3© 2012 McGraw-Hill Ryerson Limited LO5 Arguments Against Free Trade