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NotesEconomics HLTopic 4.3Free trade versus trade protection
Back to Economics HL Topics
4.3.34 min read

Free trade versus trade protection (Economics HL)

IB Economics · Unit 4

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Contents

  1. 1When protection can help
  2. 2Why free trade usually wins
  3. 3Exam-style question

A 15-mark question asks you to weigh protection against free trade, then judge.

When protection can help

1

Short-run jobs

Spending switches to home goods: AD rises.

Employment
2

Infant industries that grow up

South Korea's car makers grew behind tariffs, then exported.

Development
3

Against unfair trade

Anti-dumping duties stop below-cost imports.

Fairness

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Over the long run, free trade usually does more for growth.

Protection

  • Saves jobs in protected industries, at first.
  • Gives new industries time to grow.
  • Raises revenue for health and education in poorer countries.

Free trade

  • Resources go where costs are lowest: faster long-run growth.
  • No retaliation: exporters keep their markets.
  • India kept high barriers until 1991; growth sped up after it opened.

The points to remember

  • Judge with: short run v long run, which industry, richer or poorer country.
  • Protection works best temporary and targeted.

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Paper 1 asked this in November 2025, as part (b) for 15 marks.

IB-style questionDiscuss[15 marks]

Using real-world examples, discuss the view that trade protection is a more effective policy than free trade to promote employment and economic growth.

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How the 15 marks are given

MarksWhat your answer needs
13–15Theory fully explained, terms right all the way through, balanced evaluation, real examples fully developed to support the argument
10–12Theory explained, terms mostly right, evaluation mostly balanced, real examples developed
7–9Theory partly explained, some evaluation but one-sided, examples partly developed
4–6Theory only described, evaluation superficial, examples only named
1–3Theory stated but not relevant, no evaluation

IB Exam Questions on Free trade versus trade protection

Practice with IB-style questions filtered to Topic 4.3.3. Get instant AI feedback on every answer.

Practice Topic 4.3.3 QuestionsBrowse All Economics HL Topics

How Free trade versus trade protection Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

  • Define

    Give the precise meaning of key terms related to Free trade versus trade protection.

    AO1
  • Describe

    Give a detailed account of processes or features in Free trade versus trade protection.

    AO2
  • Explain

    Give reasons WHY — cause and effect within Free trade versus trade protection.

    AO3
  • Evaluate

    Weigh strengths AND limitations of approaches in Free trade versus trade protection.

    AO3
  • Discuss

    Present arguments FOR and AGAINST with a balanced conclusion.

    AO3

See the full IB Command Terms guide

Related Economics HL Topics

Continue learning with these related topics from the same unit:

4.1.1Benefits of international trade4.1.2Free trade on a diagram: exports and imports4.1.3Absolute and comparative advantage (HL)4.1.4Limitations of comparative advantage (HL)
View all Economics HL topics
Improve your exam techniqueCommand terms, paper structure, and mark-scheme tips for Economics HL
Previous4.3.2Arguments against trade protectionNextTrade agreements and trading blocs4.4.1

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