When it comes to determining the type of trade agreement a country should seek to achieve economic growth, various debates favor each side: free trade and protectionism. Free trade is when goods and services are exchanged between countries with as few limitations or restrictions as possible, while protectionism is when a country imposes restrictions, or tariffs. customs, on trade to protect its local industries or businesses from international competition. How does protectionism affect the global market? Will countries with less protectionism or countries with more protectionism do better? The answers to these questions are more complex than one might think, as they are very controversial because many people support each method. Protectionism, whether many restrictions or fewer restrictions, affects the global market in many ways, both for those imposing the tariffs and those being imposed. This paper will talk about the pros and cons of protectionism and free trade, which will also be demonstrated by the countries implementing each trade agreement, and it will discuss the best method a country can use to help it achieve growth economic. .Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay When free trade agreements are concluded, the countries involved are able to trade their goods and services with more freedom among themselves. Free trade provides consumers with access to a greater level of capacity and expertise, because companies that conduct international business have greater access to information that allows them to create more efficient and effective products or services. , after having found the best, most economical practices. This trade deal also reduces government spending as governments protect their local industries by using subsidies to help them. This means that by trading freely, less money must be provided by the government to keep prices affordable and can be spent on other needs of a society. Another advantage of free trade is that it allows technology transfer so that local companies also have access to the latest technologies from multinational partners. Although free trade has these and other advantages, it also has some disadvantages. One of the consequences of this trade agreement is that it leads to the relocation of employment opportunities. This is because international workers are more experienced, cheaper or are willing to work with fewer safety protections, meaning local workers would be companies' second choice. Free trade may also encourage intellectual property theft, because intellectual property rights may not be taken as seriously by foreign governments as they are domestically. Another disadvantage of free trade is that it can lead to deterioration of natural resources, because emerging countries generally do not have much environmental protection and free trade leads to a reduction in natural resources. The largest free trade agreement in the world is the North American Free Trade Agreement, also known as NAFTA. This is an agreement concluded in January 1994 between Canada, the United States and Mexico. The objectives of this agreement were to expand trade between these three countries and make them more competitive on the market.global. The more trade this agreement brought to these countries, the more the economic production of each of them increased. Although NAFTA has been largely successful in achieving its goals, it has also suffered many setbacks. The biggest problems with the deal are that it was accused of killing U.S. jobs, that many Mexican farmers were put out of business, and that it exploited Mexico's environment. This example shows that although free trade can be very effective and promising for the economic growth of a country, it comes with a cost that every country must be willing to pay to obtain benefits. As noted earlier, protectionism is the type of trade that countries that wish to protect their domestic industries from international competition by imposing restrictions on imports resort to. Like free trade, protectionism has both advantages and disadvantages. One of the benefits of protectionism is that it reduces economic gaps in income and resource inequality by establishing protections on domestic goods and services. This business method also protects and helps develop new industries. It is difficult for new industries to be competitive if there is no government support in the face of international competition, which means that by applying tariffs on imported products, these local industries are protected . Protectionism also creates revenue for the government, through tariffs, which are used to finance government business or needs. Protectionism has many disadvantages. One of the disadvantages of this type of trading is that it generally increases product prices instead of lowering them. Due to the implementation of customs duties, foreign products cost more and domestic companies increase their prices to match those of foreign products and earn the same amount as them. Protectionism can also create poor international relations between countries, as wars are more likely to be sparked due to protectionism, as different nations have fewer opportunities to help each other grow economically and gain power in the global market. If countries depend on each other for their economic well-being, they are less likely to go to war with each other. Adding customs duties on imported goods also limits customer choice, as international products may not be supplied to the local market, or may be supplied but prices may be out of reach of the average consumer. Protectionism is visible in the major trade war currently raging between the United States and China, which began when the United States imposed tariffs on Chinese goods. President Trump began by slapping tariffs on steel and aluminum, but this caused losses for many other countries that import these metals into the United States. In July 2018, Trump placed 25% tariffs on 818 categories of Chinese products, leading China to blame the United States. States to start a trade war. This shows how tariffs are applied to reduce the trade deficit, but it ruins relationships and can actually lead to increased taxation. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay Find the answer to The question of which trade agreement would be most favorable to a country is very complex because two countries can have completely different trading methods.