Reasons for Protection (HSC SSCE Economics): Flashcards
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Protection (trade policy)
Protection (trade policy)
Gov policies giving domestic firms advantage over foreign ones
Three main protection methods
Three main protection methods
Tariffs, import quotas, subsidies
Tariffs
Tariffs
Taxes on imported goods
Import quotas
Import quotas
Physical limits on quantity of imports
Dumping (trade)
Dumping (trade)
Selling goods abroad below home market price
Why anti-dumping measures accepted by economists
Why anti-dumping measures accepted by economists
Only protection widely accepted; prevents unfair competition
Anti-dumping complaints since WTO formed
Anti-dumping complaints since WTO formed
More than 6500
Why economists reject employment protection
Why economists reject employment protection
Distorts resource allocation, lowers long-term growth
IMF estimate on trade fragmentation cost
IMF estimate on trade fragmentation cost
7% of global economic output
US-China trade decrease by 2031
US-China trade decrease by 2031
63 billion USD