global protectionism Vs. Free Trade (1 Viewer)

[Hiba]

would you support the australian farmers and argriculture or who gives s stuff and lets go with free trade?

Why does America want free trade?|

How do you think it will affect the economy.
Well correct me if im wrong but if we allow free trade, Australia will become a 3rd world country yet if we support protectionism australia will be killed with high prices.
maybe im wrong
please add to this conversation

 

[santaslayer]

Protection doesn't go anywhere in the long run. It only makes the local producers complacent and more lazy when it comes to output because they know that they have the market all to themselves. Protection also encourages inflation due to high prices.

Free trade opens up the local economy, allowing (or forcing) local producers to be more productive and internationally competitive in the international arena. Free trade does not result in a 3rd world state as you put it because the notion of trade results in benifits to both parties if they produce an item or service in which they are comparativley better in.

America only wants free trade on certain goods and services. Agriculture is not one of them mostly due to a retaliation effect caused by the EU. The EU and America have been reluctant to instigae free trade anogst its agricultural goods because of political factors influencing them in the local level.