Trade had its long root from the time of ancient history there are evidences which support it exchange of obsidian and flint are the examples of Trade activity during Ancient Reign. Exchange of Goods and services from one person to another or exchange of commodities between two parties is what Trade known for. Trade emerged with the emergence of communication skills in Sapiens. Goods and services were bartered among the people as currency did not come into existence. ‘Danube’ river is of great significance when we concern about trade it had provide channel of transportation for flourishing trade, provides movement to trading activities. it was from age of sails when Vasco de Gamma Reached Calicut tastes Indian spices and Carried Indian Spices into Europe Which Gives rise to Movement Of European Commodities in India like gold and Indian commodity to Europe. trade provides not only flow of commodities but also sharing of different cultures traditions and gives rise to ‘Globalization’. Trade is the mark of Human growth, Bonding and sharing of Commodities and more then that. As we grows with the time, evolve with the time, trends and nature of trade also gets evolve today in modern world we Encounter with the two perspectives of trade That are Free Trade and Protection of Trade both waves of trade Over the centuries remained someone choice and someone Criticism. Both waves of trade remained always in center of discussions and there is a debate among the public Which concept of trade should be adopted wether the free trade or Protection both concepts of trade have arguements in their support and in against.
Free Trade :
Exchange of goods and services without any barrier without any control. Flow of commodities without any tariff, quota or subsidy from one entity to another from one country to another is what free trade stands for. Free trade is flourished without any barrier. There are lot of debates and arguments put around free trade but what is that makes it suitable, Free trade provides specialisation Production with efficiency. The country which is sufficient in a particular type of production or watches comparative advantage in trade of commodities must go for specialisation production.In free trade Domestic manufacturers domestic arena faces Tough competition hence when there is competition there will be certain increase in efficiency.Under free trade there is a surge in production took place for sure this will decrease the cost of commodities hence commodities will be available on the cheaper prices this will increase the consumption and hence the living standard of an individual up-to the country hence overall prosperity prevails all over the country. Apart from it Under free trade commodities which are not avail domestically can be available on minimum cost of transportation, There will be the division of labour due to specialisation. there is no interference of government and it’s policies ,and it makes the international cooperation more strong more tight.
Protection In trade or Protectionism:
Protection means providing tariffs imposing duties taxes on flow of goods and services without exchanging freely. Under protection products, commodities Or Firms are provided with Subsidy, quota or tariffs For protection, For saving domestic producers for protecting Produced commodity in international market. After the great swept of 1929 and 1930 protectionism seems to be relevant because over dependence due to free trade not only depressed US economy which was growing with a very fast pace but induced Recession in other countries also. Protection Is provided on imports from foreign on foreign commodities. There are many arguements which makes the call for protectionism suitable like Protection is provided for flourishing the domestic industries which can face tough competition in global markets. Most of the newly started industries are not mature they had spent a good capital but they are immature to face global competition hence these domestic industries did not get swept in competition therefore they are supported with protection. Employment can be flourished under protection, because protection flourished the local production and hence it will strengthen local employment provides opportunities to local hands.
Under free trade specialization production is the primary thing took place which increases over dependence for other commodities on other countries hence in a situation of war or bitter political relations this can injured so deeply to the economies of countries. On the other hand under protectionism varied production of commodities can be flourished by providing protection hence dependence will decrease over the imported commodities.But apart from it Protection or tariff trade had originated several trade wars which are influencing the global economies and hence effecting every single country economy. But whatever the concept of trade is but it is a symbol of Globalization and it will always be regarded as bonding among Mankind.