What are the differences between free trade and protectionism?

Free trade and protectionism are two different methods of handling international trade. Free trade is an economic system in which goods and services can be traded among countries without government restrictions. These restrictions may include taxes, tariffs, and quotas, and can be used to promote specific business and industries. Protectionism, on the other hand, is an economic policy that is implemented with the purpose of protecting domestic businesses and industries. This is usually done by restricting imports or by imposing taxes or tariffs on imported goods. This is done to protect domestic markets and industries from foreign competition and to encourage domestic consumption. The main difference between free trade and protectionism is that free trade allows goods and services to be traded freely, while protectionism is intended to protect domestic production or consumption. In addition, free trade usually involves lower barriers to trade, which encourages competition, encourages innovation, and enables countries to specialize in production. Protectionism, on the other hand, can cause higher prices, limitations on foreign investment, and fewer benefits for consumers. The United States has traditionally taken a stance of free trade. However, in recent years, the U.S. has implemented trade policies that are considered more protectionist. In Washington, the main difference between free trade and protectionism is that free trade encourages competition and greater economic growth, while protectionism is intended to protect domestic production and consumption.

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