9 Φεβ 2015

Free trade is best and protection is bad



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Αγαπητοί φοιτητές, να βλέπετε πάντα την αρχειοθήκη ιστολογίου για θέματα εξετάσεων ή για τα βιβλία μου.
Ερώτηση: Το ελεύθερο εμπόριο είναι καλύτερα ή η προστασία;
Free trade is best and protection is bad, both in theory and practice. Discuss with real world examples.
Supporters of protectionism claim that keeping out foreign goods will save jobs, giving ailing domestic industries a chance to recover and prosper, and reduce the trade deficits. Are these claims valid and what is the lure of protectionism?
Proponents of protection have been around for thousands of years. Plato thought that allowing foreign trade into the polis would corrupt the soul. Aristotle thought that exchanging products for money had a corrupting influence and the best state was self-sufficiency.
Perhaps the main reason why protectionism continues to exist is because special interests (auto manufacturers, steel, and textile industries) have much to gain by enlisting the aid of government to protect them form foreign competition, whereas the large majority of the population, have little to lose by any particular protectionist legislation and consumers may not even know that the measure is costing them money in the form of higher prices.
(Robert W.McGee the philosophy of trade)
While it is obvious that protectionism results in higher prices and benefits only few producers at the expense many consumers, perhaps the strongest argument against protectionism is the Moral argument.
This argument considers that the illegitimate use of the state to promote private economic interest for their own ends is based upon a preexisting illegitimate power of the state to make some persons wealthy at the expense of others ..............