Lesson 1.4 Free Trade vs. Protectionism
Objective: Analyze the arguments for and against free trade.
Topics for Exploration:
 Trade barriers and their effects
 Case for protectionism
 Trade agreements and institutions
 Subsidies, tariffs, quotas
Directions: Watch the Trade Restrictions video and complete the following notes:
Why do countries restrict trade?
Who would need protection?
Tariff ~
Quota ~
1. Domestic Jobs
Example?
Downside ~
Subsidies ~
2. Level Playing Field
Example?
Are all advantages “unfair”?
Potential response to tariffs ~
Arguments against:
3. Government revenue
Explain the concept:
4. National Defense / “Interest”
Example?
Problem ~
Drawback?
5. Infant Industries
Explain the concept:
6. Export Protectionism
Recap:
What are the arguments for free trade?
What are the arguments against free trade?
Which argument makes us better off?