The issues facing countries during this financial crisis is enormous. The steady stream of job losses are weighing on the political strength whether to hold on to the tenants of WTO. Due to the pressure from the population, free trade is in serious question. Is the protectionism the answer to job recovery?
The world has become intertwined. Firms have become global. It would be difficult for companies to operate and generate jobs to alleviate the local job loss if the companies face trade barriers around the world.
Governments should intervene as they have rightly to provide economic package to stimulate the economy. Stimulus interlaced with protectionism will not only hurt the global recovery, but also it would affect the local economy in the long run.
Countries must focus on stimulus sans protectionism.
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