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PATRIOTIC PURCHASING - Coggle Diagram

- - - - As international trade becomes freer
      - Leads to more competition from low-wage foreign workers
    - - Fear of job loss
      - Threat to livelihood
      - Example: “drive the American automotive industry over a cliff”
    - - Tariffs: Tax on imported/exported goods
      - Import quotas: Limit on quantity of goods allowed into a country
      - Purpose: “to shelter citizens from... negative effects”
    - - Some Canadians: “Would we be better off buying only Canadian goods?”
      - Reflects desire to support local industry
    - - “Most mainstream economists... free trade benefits all consumers”
      - Argument: Free trade = global prosperity
    - - “Is it ever to a country’s economic advantage to encourage its citizens to solely buy products made in-country?”
- - - - Domestic businesses push for protection to avoid competition and costs of innovation.
      - Politicians justify support for protectionism to please voters.
      - Retaliation from other countries slows global trade.
      - This eventually harms the same businesses that demanded protection.
- - - - Buying local might slow job losses in the short term.
      - Protectionist measures only temporarily secure jobs.
      - Workers under protectionism may fail to adapt to change.
      - Early adaptation leads to better long-term outcomes.