XI Международная студенческая научная конференция Студенческий научный форум - 2019

The problem of choosing between protectionism, which makes it possible to develop the national economy and free trade, which gives free trade and the development of market relations, as well as identifies the most competitive industries.

There is no doubt that each of the policies has its advantages and disadvantages. For example, the policy of protectionism strongly supports national production, sets high import duties on imported goods, which would seem good for the national producer, but the market can be very limited in the choice of goods and services, as it was in the USSR.

With the policy of free-trade, the market is completely open to trade, there is a huge choice of producers of goods and services, a large number of investors are attracted, which is good for the state, but at the same time, national industries can be destroyed due to strong competition from the outside.

To better understand what we are talking about, we will understand the concepts and characteristics of these two economic policies.

Protectionism is an economic policy of the state aimed at restricting international trade. In practice, protectionism has been applied since the emergence of international trade relations.

There are several forms of protectionism:

selective protectionism-directed against individual States based on or individual goods base.

industry protectionism free - protects certain incoming industry (first of all allowed agricultural holding agriculture, in the framework of the may agricultural protectionism collective)

collective protectionism theory is held by the unions against countries in may countries, they are not part of cash

hidden protectionism is the beginning of the historical methods of domestic economic policy the beginning.

The state, pursuing a protectionist policy, uses the tools of foreign trade policy, the choice of which depends on its specific objectives. The tools of foreign policy include:

tariff restrictions (customs tariffs, customs duties, tariff quotas);

non-tariff restrictions.

How can a state use protectionist methods in relation to other countries?

An example is the trade embargo-a ban by the state against another state on the import or export of any goods. The reason for such a trade ban, as a rule, are political motives.

The main objective of the embargo is to exert pressure on another state to achieve political and economic objectives.

Also, the state can apply quotas (restriction in quantitative or value terms of the volume of products allowed for import into or export from the country for a certain period) and licensing (regulation of foreign economic activity through permits issued by state bodies for export or import of goods in specified quantities for a certain period of time. )

The state may apply subsidies to support domestic producers.

Subsidies are government payments to domestic producers, working for export. They can take various forms: cash grants, cheap loans, tax cuts on export industries, the state's share in the production of export products.

Based on the above, it can be concluded that the policy of protectionism can manifest itself in various forms and it does not mean complete isolation from foreign producers.

Now consider such economic policies as free trade:

The policy of free trade is the policy of non-interference of the state in international trade. In its pure form, this means that the state refrains from directly influencing foreign trade, leaving the market as the main regulator. In this case, trade is carried out and developed in accordance with the international division of labor and the modern version of the theory of comparative advantage. It is believed that such policies lead to the most efficient allocation of resources on a global scale and to the maximization of world income.

Free trade policy has the following main characteristics:

1) Stimulates competition processes, both among domestic producers and in the world market.

2) Enables international trade in accordance with the law of comparative competitive advantage.

3) makes it possible to use international specialization, which is the basis for the growth of profits, producers and consumers.

4) Expands the boundaries of the market - it creates the basis for mass production and obtain a positive effect from it.

Summing up, we can say that each of the economic policies is applied in a certain economic situation or in a certain period of time. They share a common goal – is to improve the economic situation of the state, which applies these policies. It is important to note that currently, frittering and protectionism are not used as the main economic policy of the country, each of them is used in a limited way in relation to different countries.

REFERENCE LIST

online resource https://cyberleninka.ru

online resource http://newinspire.ru

Код для цитирования: Скопировать