Economic protectionism is a policy that places barriers on the trade between countries through methods such as government regulations and trade quotas with the goal of protecting their own country’s economy from the possible perils of international trade. Economic nationalism is an ideology that supports protectionism as it places more emphasis on local and domestic business than multinational companies that benefit more from globalism. The primary purpose of trade protectionism and nationalism is to guard a country’s most vital interests such as labor, key industries, and commodities. Unlike protectionism, free-market economies or globalism allows the exchange of goods and services between countries in the global market. There are no restrictions such as taxes or tariffs as the state’s purpose to benefit from various opportunity costs of production.

In 2016, during President Trump’s elections, Americans were forced to choose between nationalism and globalism. In this case, they had to support the notion that a country can be independent (nationalism) or dependent on other countries (globalism). As a nationalist, President Trump declared that America is a nation within its economy that does not exist in some global market place with open borders. By Trump claiming that he is a nationalist, it meant that all Americans had to coexist with him. He said, “A globalist is a person that cares more of what happens in the global market than his own country, and we cannot be that.” During his campaigns, he championed for the interests of America by placing a lot of emphasis on protectionist measures. His sentiments regarding economic nationalism got people worried because they were used to a capitalist economy; where there are free trade and government involvement. The Americans were forced to question their patriotism towards their nation. But which of these two choices are sound economic policies?

Both of the nationalism and globalism policies are good depending on the perspective one looks at for reference. As an economic policy, nationalism and protectionism allow a country to function in independence and protect its core economic values such as national security, jobs, industries, and commodities. A country’s nationalism will imply guarding domestic, and infant industries as this internal trade wouldn’t involve business activities across the borders. It frees a nation the trauma of problems related to international trade such as foreign policies and regulations, foreign customs and laws, and foreign languages. There is also the risk of unfavorable exchange rates which may prompt a nation to incur debts that are not good for its economic growth. The main idea of economic nationalism and protectionism is to embrace one’s country, and as Trump says, “We are tired of saving the world at the expense of our nation, and it is high time we think about America.” Protectionism is an excellent economic policy when one looks at it from the perspective of putting their country above anything else.

The other side of the choice that Americans had to make in 2016 was the promise of government involvement in a more significant part of the economy. A larger portion of the economy implies globalization with the idea of increasing free trade across borders. This choice is a good economic policy as it creates an unambiguous net gain for a country.  A globalist economy allows a nation to specialize in the trading of goods for which they have a high comparative advantage, thereby creating job opportunities for its citizens. It also helps countries which are underdeveloped by employing their labor. A nation can realize its economic growth in an environment where people can trade freely and pursue their interests. This kind of economy fosters competition allowing people to work harder, and hence contributing to a nation’s wealth.   A global economy will bring about peace between nations.

The real foundations of a country’s economy depend on its institutions, and they include; property, market competition, free exchange, social cooperation, and division of labor. A state can realize growth in its economy when there is the security of property. When a nation protects an individual’s property, it implies that he or she can enjoy the fruits of his labor, and this security is his/her only incentive. Competition is another institution that promotes the economy of a nation. With competition, people tend to come up with more and more effective methods of production to attain great profit margins and also reduce the costs of production. Free exchange is the most fundamental institution of an economy. It gives individuals the freedom to engage in trading and exchange their property for money or any other monetary benefits. Social cooperation and division of labor go hand in hand, and as Adam Smith puts it, an economy is nothing without a combination of people for cooperative support.

The 2016 choice of government taking a larger role in the economy or globalization reflects these economic foundations. Globalism exists as a free market economy that does not place restrictions on international trade. Adam Smith asserted that a competitive market economy produces prosperity, and this is what the globalists side thrives to achieve in their nation. Since it is an open market economy, it allows for people to own property for which they can competitively exchange. Unlike the globalist side, the nationalist party does not allow for free trade and competition; this is where it falls short. Nationalist people have got the institutions of property, the division of labor, and social cooperation from within its nation.

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