The Analysis of Advantages and Disadvantages of Free Trade and Trade Protection

The paper points out that the trade policy carried out in one country depends on both the national income and national welfare. Traditional trade theory believes that the complete competition is the best interpretation of the normal international market. The strategic interfering policy makes the market competition a battle. However, protectionism does no good to world economy as a whole, though protectionism might bring some limited benefits to the welfare of some countries, for it brings high cost to country's social economy.