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  • 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


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