Tariffs and Free Trade

Answer the following question as thoroughly as you can. Organize your answer into several paragraphs to ensure clarity and this enables you to have a structured answer that moves through ideas in a manner showing organized thought. Do not just throw a bunch of facts on the paper. Anyone can look up facts and type them into an answer; therefore, that is not sufficient. You need to show insight, analysis, and solid understanding of the concepts in the material and how concepts interact.

There is no word count minimum or maximum. You need to show you understand the material and provide enough information and analysis to make that clear. More is not always better, but it is not possible to answer fully in a half page. Typically, answers are 3-4 pages; however, some excellent 2 page answers earn As if succinctly showing thorough understanding.

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If you cite sources, you need to show that as you would a normal paper; however, you are not required to do any research for this and the expectation is that you can find the answer fully in the material provided in the unit. There are no points for having done outside research for this question and you can earn an A without outside sources.

Essay Question:

Discuss pros and cons of protectionist (tariffs) vs. classical liberal (free trade) economic policies. What is the role of the government when each of these trade policies is enacted? Who are winners and losers (give examples of sectors in the economy in different scenarios). Show you understand each type of trade policy and arguments for and against each.

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