Yourmother: What is international investment and what is its connections to Protectionism and Free Trade?
I’ve been having a difficult time searching information on these topics. I need to find something concise and straight-forward. So what exactly is international investment? (put it simply please). Also, what is international investment’s connection to free trade? Does free trade require international investment? THanks!
Answers and Views:
Answer by math_helpsyd
a protectionist way of running a state is one where there is High tariffs, High taxes and the economy of the nation is controlled by the government (regulated) as well as how people spend their money. Electrical, Communication, banks and transport companies are all controlled by the government.
free-trade is the opposite of this, the economy is left alone by the government without any intervention. Companies are government-independant. free-Markets are enforced and argue that because of competition; prices will remain lower than projectionist way of running the economy. The public is allowed to by a percentage stack in a company and in return will receive a portion of profits.
International investment is linked with globalisation and free-trade. A protectionist government will not allow international investors to invest in their markets as most of the time there isn’t a market or the rules of international investors is regulated. International investment came with free-trade not only within a nation-state but within countries. That is no-taxes on trade between countries and limited government intervention from both sides.
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