The main objective of the following paper is to explain the protectionism versus free trade argument, to explain the problems this debate has created in the arena of international trade and to outline the ways in which international agreements have contributed to their resolve. Although many of the following issues are still present in the world economy today, they are constantly improving due to agreements such as the Uruguay Round and the North American Free …showed first 75 words of 689 total…

…showed last 75 words of 689 total…known as International Price Discrimination and occurs when a producer engages in dumping behaviours continuously. A higher price is charged domestically where the price of the good is protected by trade barriers and transportation costs and a lower price is charged internationally so the producer can compete in the foreign market. Predatory dumping is a temporary practice which aims to drive foreign producers out of the market before raising prices back to the market price.