Commerce and protectionist laws

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  • Publicado : 14 de septiembre de 2010
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Commerce and protectionists laws

In the next essay the main problems of protectionists’ laws in commerce will be discussed. Who benefits, who loses, what can be done and what has been said by many authors will be presented and quoted. Different point of views, and why are this laws notworking for every country in the world will be alleged. Matters of political leadership and corruption are to be included as well, allowing the reader to understand the big problem and the notorious issue this is.
The argument of protectionism, or called “fair trade” by many, has claimed that laws should protect developing countries that are not ready yet for commerce without barriers. Supportersof protectionism say that keeping out foreign goods will save jobs giving small and domestic industries a chance to recover, evolve and prosper and at the same time reduce the trade deficits. But are these statements valid?

Big productive countries vs. small productive countries
Developedcountries are ready to put down barriers and start trading with no blocks. They are ready because they have no problems by introducing new products to their country; they already have well stated and developed all their operational sectors or at least most and mainly of them, they know the other countries will not affect their economy with no protectionism.
That is why developed countries are themain heads of the World Trade Organization and Trade Programs that support and enhance the international commerce and globalization. Probably their main objective is to eat and disappear all the small productive countries and take advantage of them by only selling their products and by using them as labor and manpower, so that would make that country totally helpless and dependent of the biggercountry.
Thus small productive countries and third world countries are in a great disadvantage compared to developed countries, if protectionism disappeared.
Protecting domestic industries from small productive countries against foreign competition by tariffs, subsidies, import quotas, or other shelter will raise the price of imported articles making them less attractive to consumers than cheaperdomestic products will.
By leaving this type of protectionism, small productive countries will have the opportunity to raise and have a chance to prosper in the market and in its economy. Once the country is ready to start exporting and importing goods with no barriers they can rip down the protectionism program and join the trading with bigger economies, globalization and internationalcommerce.



A different point of view
Now, of course there are many winners in protectionism as well, such as some big corporations, unions, and farmers' groups, all of whom would like to getaway with charging higher prices and getting higher wages than they could expect in a free marketplace. These special interests have the money and political clout for influencing politicians to pass laws favorable to them. Politicians in turn play on the fears of uninformed voters to rally support for these laws.
Then we are the losers, of course ordinary consumers. Our freedom is being crushedinto the dust by these laws; we are being robbed, through taxes and higher prices, in order to enlarge the pockets of a few politically-privileged big corporations with big connections naturally.
"Protectionism is a misnomer. The only people protected by tariffs, quotas and trade restrictions are those engaged in uneconomic and wasteful activity. Free trade is the only philosophy compatible with...
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