Protectionism vs. Free Trade
Economic Assistance
loans or grants given to help build a country's industry or infrastructure
Foreign Aid
money, goods, and services given to help nations in time of need
Technical Assistance
professional aid such as teachers and engineers to teach skills
Import quota
restriction on value of the number of units of a good that can be bought
Arguments for Free Trade
Competition means improved products, Trade restrictions damage export industries putting Americans out of work, Specialization and comparative advantage lowers prices
Argument for Protectionism
Protect US jobs, Protect infant industries, Safeguarding national security
Revenue Tariff
a tax to raise money; not hurt trade relations
Embargo
complete restriction on imported or exported goods
Protective tariff
tax used to raise the cost of imported goods to benefit domestic producers
Protectionism
the use of trade barriers to protect United States industries from foreign competition
Free Trade
trade with lack of restrictions