What are the differences between free trade and protectionism?
Free trade is an economic system that promotes the unrestricted and unhindered buying and selling of goods and services between different countries. It is based on the idea of reducing or eliminating trade barriers such as tariffs, quotas, and subsidies. This system encourages competition and allows for the free flow of goods and services between countries. It also allows for the growth of international trade, which increases economic growth and reduces poverty. Protectionism, on the other hand, is an economic system in which a country or state implements policies to protect its own industries and businesses from foreign competition. This may be done through tariffs, restrictive quotas, or subsidies. Protectionism is usually used to achieve certain economic goals such as creating jobs, making domestic products more competitive, or protecting certain industries from foreign competition. In California, free trade is encouraged through various policies and laws which aim to reduce trade barriers and promote economic growth. This includes the US-Mexico-Canada Agreement, which replaced the NAFTA agreement and eliminated tariffs on various products. The US-Mexico-Canada Agreement also allows for more investment opportunities and greater access to markets in Canada and Mexico. On the other hand, protectionist policies can be seen in certain industries, such as agriculture, where the state tries to protect local farmers by imposing tariffs and other restrictions on imported produce.
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