1. Trade Overview

2. Why Trade? Lower Prices Greater Choice Differences in Resources
Economies of Scale
Increased competition
Comparative advantage/opportunity cost

3. Free trade and protectionism
Free trade means there are no barriers between countries.

4. Arguments for Protectionism
Protect domestic employment
Protect against low cost labor
Protect infant industries
Avoid overspecialization
Strategic reasons
Prevent dumping
Product standards
Revenue

5. Arguments against protectionism
Higher Prices
Less choice
Ineffeicient

6. Types of Protectionism
Tariffs
Quotas
Subsidies
Embargoes

7. WTO Established to promote and maintain trade standards
Handle disputes
Monitor trade policies
Technical assistance for developing countries

8. Economic Integration Globalization Trading Blocs
Preferential trading area (PTA)
Free trade areas (FTA)
Customs union
Common markets
Economic union