How did developed countries become so rich?

How did developed countries become so rich?

Types of trade restrictions

Lesson objectives

• Understand the meaning of protectionism
• Know and Understand the types of protectionism used by countries
• Know and Understand the arguments for protectionism
• Discuss the counterarguments to each protectionism idea above.
• Know and understand the arguments against protectionism

Isn’t free trade how all the world’s developed countries have become rich?

• When they were developing countries themselves, virtually all of today’s developed countries did not practice free trade.
• They promoted their national industries through tariffs, subsidies, and other measures.
• Britain & the US often worst offenders.
• “liberal” world economic order was perfected around 1870 and was based on laissez-faire industrial policies at home.
• Things started to go wrong with the First World War. Countries started to erect trade barriers again.
• The world free trade system finally ended in 1932.
• Contraction, instability & WW2 completed the destruction.