International free trade occurs when there are no barriers to trade. Countries can get a lot of benefits from free trade. {{U}}(31) {{/U}}, all countries choose to adopt protection policies to some extent In this essay, I will give{{U}} (32) {{/U}}of the arguments in favour of world free trade, describe the methods for the trade protection policies{{U}} (33) {{/U}}countries erect to protect domestic industries and give the arguments which can be put{{U}} (34) {{/U}}to justify protectionist policies.
Tariffs are taxes on{{U}} (35) {{/U}}products. Sometimes, tariffs are known{{U}} (36) {{/U}}imports duties and customs duties. They can be used{{U}} (37) {{/U}}raise revenue. But, they are usually used to{{U}} (38) {{/U}}imports and also to help domestic producers. The effect of imposing{{U}} (39) {{/U}}tariff is to raise price for domestic consumers, and some consumers will switch consumption{{U}} (40) {{/U}}imported goods to domestically produced substitutes. {{U}}(41) {{/U}}are two types of tariffs. One is percentage taxes, it is based on
percentage of value of goods. {{U}}(42) {{/U}}one is specific (fixed sum taxes), it is based on a fixed tax {{U}}(43) {{/U}}unit or weight. Quota is a limit on the supply of goods or services. It can be imposed on exports. The domestic market share will increase because of{{U}} (44) {{/U}}a limit on the quantity of imported goods. However, the price of protected goods will also rise because a quota is to reduce supply. Voluntary export restraint or restriction {{U}}(45) {{/U}}similar to a quota, but this time the limit on imports arises from a voluntary agreement {{U}}(46) {{/U}}the exporting and importing countries. For example, the UK had an agreement with Japanese car{{U}} (47) {{/U}}that they should not take{{U}} (48) {{/U}}than 10 percent of the UK car market. Exchange control means that a government control on foreign currency controls importers access to foreign currency. This is a{{U}} (49) {{/U}}which was used by a number of European countries, {{U}}(50) {{/U}}the UK, in the 1960s and 1970s and is still found in some developing countries.