Free Trade vs. Protectionism

The video tutorial explores the concepts of free trade and protectionism, discussing their advantages and disadvantages. It explains how protectionism uses tariffs, quotas, and other barriers to shield domestic industries, while free trade promotes competitive markets and international cooperation. The tutorial also touches on recent trade controversies, such as Brexit, and the role of organizations like the WTO in facilitating global trade.

What is the general belief about the relationship between trade and prosperity?

• More trade leads to less prosperity.

• Less trade leads to more prosperity.

• More trade leads to more prosperity.

• Trade has no impact on prosperity.

Which of the following is a common method used in protectionism to restrict trade?

• Open borders

• Free trade agreements

• Tariffs

• Subsidies

Why might a government impose an import quota?

• To reduce domestic production

• To encourage foreign competition

• To limit the amount of goods imported

• To increase the amount of goods imported

How can protectionism benefit workers in certain industries?

• By reducing the cost of imported goods

• By encouraging outsourcing

• By protecting jobs from foreign competition

• By increasing foreign competition

What is one reason protectionism might be necessary during a national security crisis?

• To reduce domestic production

• To promote international trade

• To ensure a supply of essential goods

• To increase foreign imports

What is a key advantage of free trade according to most economists?

• It reduces the quality of goods and services.

• It encourages competitive markets.

• It increases government intervention.

• It limits consumer choices.

How does free trade promote international cooperation?

• By isolating countries economically

• By fostering trade dependencies that reduce conflict

• By making countries less dependent on each other

• By increasing the likelihood of war