Unit
3: The Case for Protection
Introduction
In general, the theory of
comparative advantage tells us that protection of domestic
industries from open markets makes everyone worse off. However,
this isn’t exactly true: protectionism affects different
people in different ways, and not all kinds of protection
are alike.
This unit looks at the history of protectionism in the US,
the arguments made in favor of protectionism; some basic
economic theory on the effects of tariffs, quotas; and other
types of protectionism; and a look at who typically falls
on which side of the protectionism-free trade debate.
