1. Free Trade vs Protectionism
trade blocs like NAFTA
Protectionism
standards, tariffs, embargoes, quotas and subsidies
Pros
More variety of G/S
Less expensive G/S
U.S. businesses have to do better to compete
Protects infant industries
Protects national security
(self reliance)
Protects domestic jobs
Protects foreign workers from unfair labor practices
Protects environment in developing countries
Cons
Sometimes goods poorly made
Higher-paid American workers loose jobs to lower-paid foreign workers
American companies move manufacturing to other countries
Higher priced domestic G/S
Higher priced foreign G/S
Other countries will trade less with the U.S.
Other countries will erect trade barriers