The advantages and disadvantages of Protectionism

Between protectionists and advocates of free trade is a long-standing controversy. Mercantilists, who first applied to the analysis of foreign trade and saw it as a source of wealth of the state, were, however, opponents of protectionism – a system of measures to stimulate the national economy and its protection from foreign competition. First economists who favored free trade, became a French physiocrats. They denied any productive role of trade in the increasing wealth of the nation. English classics were the most consistent defenders of economic liberalism in general and international trade in particular. They not only developed a coherent theory of foreign trade, but also offered a specific policy in this area. In the XX century as a result of war and economic crises, occurred a significant strengthening of protectionist ideology and practice, and now it is one of the important elements of international economic relations.

INTRODUCTION ..3
THE THEORETICAL PART ..4
The Historical aspect……………………………………………………….4
History of Protectionism…………………………………………….4
History of Free trade………………………………………………...7
The concept and essence of free trade and protectionism……………….…9
Definition of protectionism……………………………………….…9
Definition of free trade……………………………………………..11
The advantages and disadvantages of Protectionism……………………...13
The Advantages for Protectionism………………………………....13
Disadvantages of Trade Protectionism……………………………..15
The Advantages for Free Trade………………………………….…17
Disadvantages of Free trade………………………………………...20
THE PRACTICAL PART…………………………………………………….….23
Why Free Trade Is Far More Preferable Than Protectionism