PRESENTATION :

INTERNATIONAL TRADE , PROTECTIONISM & FREE

TRADE

Presented by : Narayan Sharma

BBA III SEM
 TABLE OF CONTENT

 International Trade
 Protectionism
 Free Trade

Question: What is International Trade ? Write about protectionism & free trade , citing relevant examples.
 INTERNATIONAL TRADE

International Trade is the exchange of goods & services across international borders. International Trade
contributes and increases the world economy. The most commonly traded commodities are television sets,
clothes, machinery, capital goods, food, and raw material, etc. It comes with additional risk caused by change in
exchange rates, change in government policy & financial markets but at the same time when the goods or
services are exchanged globally, their prices standardize in the international market i.e. Price Stability
Classification Of International Trade
 Import Trade
 Export Trade
 Entrepot Trade
 PROTECTIONISM

Protectionism refers to government policies that restrict international trade to help domestic industries.
Protectionist policies are usually implemented with the goal to improve economic activity within a domestic
economy but can also be implemented for safety or quality concerns.
Protectionism  policies can help to create domestic jobs, increase gross domestic products  (GDP), and make a
domestic economy more competitive globally.
Types Of Protection Tools
 Tariffs
 Imports Quotas
 Import Standards
 Government Subsidies
 FREE TRADE

Free Trade exists when there are no restrictions on imports & exports. Protectionism Tools are the
restrictions of Free Trade.
The opposite of free trade is protectionism—A highly-restrictive trade policy intended to eliminate
competition from other countries. Free Trade allows businesses to expand & sell to people around
the world bringing jobs & prosperity, allowing millions of people a better quality of life. Without
free trade many of the things we consume would be more expensive – or poor quality.
 Protectionism
• It protects domestic industries.
• It allows freer movement of resources.
• It adds costs to consumers.
• It protects national culture.
• It increases domestic competition &
efficiency
Free Trade
• It protects jobs (votes).
• It allows specialization.
• It strengthens absolute/comparative advantage.
• It strengthens political interest.
• It provides access to more markets.
• It prevents dumping.
• It fosters efficient market mechanism.
• It protects domestic industries (esp. strategic / infant
industries).
• It allows freer movement of resources.
• It adds costs to consumers.
• It protects national culture.
• It increases international competition and efficiency