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advantages of trade protection
protection of infant industries
national security
health & safety
environmental standards
anti-dumping
unfair competition
balance of payments protection
generating government revenue
protection of jobs
ELDC diversification
infant industries
new or unestablished industries that have the potential to achieve a comparative advantage but are too underdeveloped to compete with foreign firms
dumping
the sale of good & services by foreign firms at a price lower than the cost of production
balance of payments
financial record of a country’s transactions with the rest of the world
includes the country’s trade of goods and services with other countries
Economically least developed countries
(ELDCs)
low income countries facing severe structural barriers to sustainable economic development
low levels of human capital
highly susceptible to economic & environmental shocks
disadvantages of trade protection
misallocation of resources
retaliation
increased costs → higher prices
less choice
domestic firms lack incentive to become more efficient
reduced export competitiveness
retaliation
actions taken by a country in response to trade restrictions being imposed on it from other countries
export competitiveness
the ability of domestic firms to export products successfully to foreign markets owing to their ability to compete in foreign markets
Note 
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