Summary of Y1/IB 14) Benefits of Trade and Protectionism

00:00:00 - 00:05:00

The video discusses the benefits of trade and protectionism. It explains that trade allows for specialization of firms and increased profits for both consumers and firms. However, there are problems with trade, such as when industries decline, and countries adopting protectionist measures. Government can use a variety of policies to protect domestic industries, such as tariffs, quotas, and embargoes.

• 00:00:00 The benefits of trade are that it allows for specialization of firms and increased profits for both consumers and firms. However, there are problems with trade, such as when industries decline, and countries adopting protectionist measures. Government can use a variety of policies to protect domestic industries, such as tariffs, quotas, and embargoes.
• 00:05:00 This video explains the benefits of trade and protectionism, which are intended to protect domestic industries from competition. When two countries engage in voluntary exchange restraints, they are less likely to suffer from retaliation.