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