ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Upon examination, the detriments that free trade poses for developing countries include halting industrial development, stagnating poverty reduction, causing infant industries to compete with developed ones, and unfair disadvantages.

Detailed explanation-2: -But free trade can – and has – produced many negative effects, in particular deplorable working conditions, job loss, economic damage to some countries, and environmental damage globally.

Detailed explanation-3: -Advantages to trade protectionism include the possibility of a better balance of trade and the protection of emerging domestic industries. Disadvantages include a lack of economic efficiency and lack of choice for consumers. Countries also have to worry about retaliation from other countries.

Detailed explanation-4: -Protectionism is an attempt to mitigate the harm done by international trade. The most prominent argument for tariffs, quotas and other barriers to trade is to protect jobs and incomes that otherwise would be at risk from foreign imports.