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Protectionism or Globalization?

So now that you have offered us your opinion, watch the video! You will find some MCQs right after to test what you have learnt.
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Welcome to our video on international trade and whatever It is good to have a business in a country that makes it hard for foreign businesses to enter its market, directly protecting its national business. Let us start with the term mercantilism and what it means. You may wonder why I put that part two and two with a word protectionism in bold letters, that is because mercantilism is also known as protectionism.
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Mercantilism is a theory in economics according to which, a country should aim at exporting rather than importing in order to ensure wealth and economic growth, this system dominated Western European economic foreign policies from the 16th to the late 18th centuries the goal of these policies was to achieve a favorable balance of trade that would bring gold and silver into the country, in other words wealth and also to maintain domestic employment, in other words, improve economic growth.
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In trade policy, the government assisted local industry by imposing tariffs, quotas, and prohibitions on imports of goods that competed with local manufacturers governments also prohibited the export of tools and capital equipment, and the emigration of skilled labor that would allow foreign countries and even the colonies of the home country, to compete in the production of manufactured goods, at the same time though, diplomats encouraged foreign manufacturers that owned specialized knowledge and skills to move to the diplomats own countries. Countries under mercantilism tried to produce everything they needed at home. The publication of The Wealth of Nations in 1776 by Adam Smith, is generally considered to mark the end of the mercantilistic era. What did Adam Smith suggest?
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Adam Smith suggested that countries should stop producing everything themselves, and focus on where they could have a competitive advantage, this means that he suggested opening up trade as a means to reduce prices of goods, develop skills in new jobs, and as a consequence, economic growth but let us learn a bit more about Adam Smith. Adam Smith was a Scottish social philosopher and political economist, interested in understanding what motivates people to trade and accumulate wealth he influenced economic thought, and wrote the books An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776, and the Theory of Moral Sentiments, published in 1759. What had Adam Smith observed?
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Adam Smith observed that some countries were better than others in certain production capabilities like France for wine, or Italy for lays, and advocated that countries should focus on building the skills only where they have an advantage on as they could produce those goods at a lower price, and trade with products they needed, that would never produce at a lower price.
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That period of time, bread was very important, and thus the grains bread was made of, like barely, corn, oats, wheat, etc, England wanting to protect its farmers and to be honest, the landlords that took high rents too, restricted imports of those grains, the restrictions on cheaper imports, meant that special laws, called the corn laws, were signed but prices, instead of staying low, increased. Many people from disadvantaged communities, had to spend a lot of their small income on just bread, Adam Smith debated that cheaper imports would eventually favor the whole economy, and his theory was supported by manufacturers and merchants that wanted to export too, of course those merchants that wanted to export [inaudible].
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Supporting and training people from jobs lost not only supports economic growth, enabling social justice and peace, but protects and it gains from a change in the country’s economic system. Governments should also allow social mobility that can be achieved through education, as another factor that supports economic growth and prosperity. Thank you for watching. See you soon.
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