Summary of Commerce international 4/4 (Libre échange ou protectionnisme Terminale SES)

00:00:00 - 00:15:00

The video discusses the Pros and Cons of free trade and protectionism. It points out that free trade can help consumers by allowing them to buy cheaper foreign products, while protectionism can help producers by protecting them from foreign competition. The video also mentions that, in some cases, free trade can lead to inequality, as certain sectors of the economy become more competitive than others. Protectionism, on the other hand, has a major downside: it can lead to higher prices for consumers and less diversified products.

• 00:00:00 In this third and final part of the chapter on commerce, I present a debate between free trade or protectionism, otherwise known as the question of which is more desirable for a country - its businesses and consumers - between protectionism and free trade. Before debating further, it is necessary to define these two terms. Protectionism is a commercial policy that seeks to protect the production of goods and services in a country against foreign competition. It is relative easy to define, and protectionism is simply a policy of protecting production by restricting imports. One concrete example is the United States and China. The United States and China can produce the same good, such as a television, except that the television produced in the United States will cost more than a television produced in China. They have different wages, so the television produced in China initially costs only 20 US dollars, but it will cost 30 US dollars when it enters the American market. There is a 10 euro difference between the Chinese television and an American television of a similar quality. If the United States imports Chinese televisions, it is likely that American consumers will buy Chinese televisions because they are cheaper. Protectionism is a policy of restricting imports. The second reason a country might adopt free trade is because it
• 00:05:00 The video discusses the pros and cons of free trade and protectionism. It highlights the benefits of free trade, such as a rise in overall wealth, more diverse and cheaper products, and a decrease in inequality. It also points out the benefits of protectionism, such as the prevention of job losses and a rise in wages for domestic workers. Finally, it discusses the reasons for protectionism in different sectors of the economy, and presents an example of Renault moving production of its cars to different countries in order to take advantage of cheaper labor.
• 00:10:00 The advantages of protectionism are discussed, starting with the argument that it can protect nascent industries. Another argument in favor of protectionism is that it can help a country remain independent in strategic industries. Protectionism can also help a country produce goods at lower prices, or focus on quality instead of price. Protectionism can take years or decades to work, and must be implemented gradually in order to avoid harming nascent industries.
• 00:15:00 The video discusses the pros and cons of free trade and protectionism. It points out that free trade can help consumers by allowing them to buy cheaper foreign products, while protectionism can help producers by protecting them from foreign competition. The video also mentions that, in some cases, free trade can lead to inequality, as certain sectors of the economy become more competitive than others. Protectionism, on the other hand, has a major downside: it can lead to higher prices for consumers and less diversified products.