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Harry Bindloss




BARRIERS AND PROTECTION
Protectionism: The intervention by governments in the free trade between nations. The
methods available usually attempt to reduce imports (to protect domestic production) and
are therefore often referred to as trade barriers, although other methods may seek to
encourage exports.



Tariffs: Taxes levied by the…

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Harry Bindloss




Disadvantages of Tariffs

Increased prices ­ bad for domestic consumers
Less competition ­ firms may become less efficient
Decreased consumer welfare
Tariff wars may arise



Import Quotas: Limiting the quantity of a particular good that is allowed into the country
over a period of time.




Advantages of Quota…

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Harry Bindloss




Stringent health and safety regulations and other standards
Subsidising domestic production
Non-competitive purchasing by governments
Delaying imports at borders through excessive administration
Advertising campaigns to buy domestic goods
Environmental standards
HOWEVER ­ You can't measure NTB's, NTB's are increasing.

ARGUMENTS TO JUSTIFY PROTECTIONISM

1. Non-economic arguments ­ Local…

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