Free Trade and Protectionism Business & Marketing Coursework

Free Trade and Protectionism
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Free Trade and Protectionism
Adam Smith was right when he introduced the concept of specialization and trade. He argued that the benefits from free trade between countries overly supersede that of protectionism (CrashCourse, 2016). There are some countries deficient in some basic and essential commodities inclusive of the natural resources, and the only way for these countries to remain afloat economically is to wholly depend on imports-cum-exports. Exporting expands the market reach, increases sales, and also leads to more profits. Alternatively, these countries can opt to trade products for other products deficient within their borders, hence maximizing efficiency (CrashCourse, 2016). There is no doubt free trade has had a progressive impact on globalization, and the positive correlation with countries’ GDP can attest to thi...