Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. In contrast, protectionism can result in destructive trade wars that increase costs and uncertainty as each side attempts to protect its own economy.

Free trade increases access to higher-quality, lower-priced goods. Cheaper imports, particularly from countries such as China and Mexico, have eased inflationary pressure in the United States.

Free trade means that countries can import and export goods without any tariff barriers or other non-tariff barriers to trade. Essentially, free trade enables lower prices for consumers, increased exports, benefits from economies of scale and a greater choice of goods.

In the long term, trade protectionism weakens the industry. Without competition, companies within the industry do not need to innovate. Eventually, the domestic product will decline in quality and be more expensive than what foreign competitors produce. Increasing U.S. protectionism will further slow economic growth.

Advantages to trade protectionism include the possibility of a better balance of trade and the protection of emerging domestic industries. Disadvantages include a lack of economic efficiency and lack of choice for consumers. Countries also have to worry about retaliation from other countries.

Countries may impose tariffs on goods because: Diversify the economy – tariffs and protectionism can help develop new industries to give more diversify to the economy. Raise revenue for the government. Protect certain key industries from international competition to try and safeguard jobs.

There is a consensus among economists that protectionism has a negative effect on economic growth and economic welfare, while free trade, deregulation, and the reduction of trade barriers has a significantly positive effect on economic growth.

Free trade agreements don’t just reduce and eliminate tariffs, they also help address behind-the-border barriers that would otherwise impede the flow of goods and services; encourage investment; and improve the rules affecting such issues as intellectual property, e-commerce and government procurement.

However, it was two early British economists Adam Smith and David Ricardo who later developed the idea of free trade into its modern and recognizable form.

Long-range trade routes first appeared in the 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, and as far north as Britain for sources of tin to manufacture bronze.

The 3 Types of Trading: Intraday, Day, and Swing.

Day Trading Stocks

Types of Stock trading in India: Which one is for you?

• IntraDay Trading: In intraday trading or day trading, the trader buys or sells the stock on the same day.
• Swing Trading:
• Positional Trading:
• Technical Trading:
• Fundamental Trading:

• Day Trading. Day trading is perhaps the most well-known active trading style.
• Position Trading. Some actually consider position trading to be a buy-and-hold strategy and not active trading.
• Swing Trading. When a trend breaks, swing traders typically get in the game.
• Scalping.

Any amount from which you can buy a stock is decent enough to start trading, no minimum money required to start trading in the Indian stock market. Here is a list of a few popular companies whose stock prices are less than Rs 100 (at the time of writing this post). Indian Oil Corporation Ltd.

Intraday Trading