Answer to Question #242641 in Macroeconomics for Ayanda

Question

Argue how free trade rather than protectionism can favour countries

Answer 1

Consumers benefit from free trade. By reducing tariffs and promoting competition, it lowers prices. In theory, this will lower the cost of goods and services. Protectionism, on the other hand, can lead to costly trade wars that increase prices and uncertainty as each party tries to safeguard its own economy.