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Trade protection - introduction

Now that you understand there are many good reasons for the world to have free trade you need to know that there are also arguments for restricting free

trade, referred to as protectionism because it is an attempt to protect domestic industries from foreign (often cheaper - for whatever reason such as low wage workers or exchange rate differences) competition.

The focus of the IB syllabus is on the ways countries try to restrict free trade as a contrast to the srguments for free trade.

Arguments for and against protectionism come later.

This is a very contentious issue and countries that ostensibly are in favour of freedom (USA, Europe, UK ) have very many unfair protectionist policies that are designed to stop free trade.