LIBERALISM OR PROTECTIONISM IN CONDITION OF BIG ECONOMIC CRISIS

Abstract

In the conditions of the big economic crisis, there is always the question whether it is better to conduct liberal or protective policy in the area of foreign trade. The representatives of protectionism say that restricting imports will encourage local employment, while the representatives of liberalism, say that closing the national borders with protectionist measures can only make crisis bigger, so the conclusion is that liberalism is the only possible solution. This paper seeks to prove that liberalism in a foreign trade is the only possible solution in conditions of both the big economic crisis and the normal economic activity.