Answer to Question #238265 in Macroeconomics for Hunk

Question

Argue how free trade rather than protectionism can favour countries

Answer 1

Free trade allows countries to acquire goods and services at lower prices since there is no tariffs. This allows consumers purchase more goods of better quality which significantly lead to economic growth. On the contrary, protectionism suppresses free trade by imposing high taxes on imported goods to promote local industries. However, some countries do not have enough raw materials for production, therefore free trade can favour countries by allowing them get whatever goods or services demanded.