Protectionism
- Created by: Fi Alade
- Created on: 02-04-14 17:48
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- Protectionism
- Tariffs
- (customs duty) (import duty)
- tax on imported goods
- raise revenue for expenditure
- raises final price for consumer
- can be absorbed by producer
- consumers buy domestic goods instead
- Quotas
- physical limit on the quantity of a good imported
- increases share of the market available for domestic producers
- raises price of imported product
- subsidies
- grants to domestic producers to artificially lower production coss
- administrative regulations e.g. health and safety
- Against Protectionism
- inefficient resource allocation
- higher price and less choice for consumers
- less incentive for domestic producers to increase efficiency
- difficulty of removal because of effect on domestic producers
- Justifying Protection
- infant industry growth
- job protection
- dumping
- selling goods below costs of production
- Tariffs
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