Monthly Archives: September 2017

Free Trade

Learn Globalization and Free Trade

Such opposition may come in the form of a specific government intervention. There are several reasons for such opposition. First, certain occupations and industries should be protected from foreign competition (Hill, 2004). United States provides protection to vital industries such as automobile, machine tools and steel in the form of Voluntary Export Restraint (VER) in the 1980s, which protected jobs as well (Hill, 2004). However, these measures are not justified because the price of this product is higher than the world price by reducing imports from abroad, hence diminishing global competitiveness (Hill, 2004). Another argument related to the opposition is the need to protect infant industries with appropriate tariffs, import quotas and subsidies until they have developed enough to compete on the global stage (Hill, 2004). However, such protectionism does not usually make the industry more efficient, with the side effects make them more satisfied. read more »