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reasons: protecting domestic industries
Govs may impose trade restrictions to shield domestic industries from foreign competition.
This is often done to prevent job losses + maintain national self-sufficiency in critical sectors.
reasons: national security
Trade restrictions may be used to safeguard national security interests.
The X of certain techs/Gs cld be restricted to prevent them from falling into the wrong hands.
reasons: infant industry argument
Govs may protect emerging or "infant" industries until they can compete internationally.
Temporary trade barriers, like tariffs, can provide domestic industries time to grow + become competitive.
reasons: anti-dumping measures
They r imposed when foreign companies sell products below their CoPs in the domestic market, harming domestic producers.
These measures protect local industries from unfair competition.
reasons: environmental + health concerns
Restrictions may be enacted to prevent the M of products that don’t meet domestic environmental or health standards.
Ensures imported Gs meet safety + quality requirements.
reasons: BoPs
Trade restrictions can be used to improve a country's BoPs.
Reducing Ms t thru tariffs/quotas can help reduce trade deficits.
types: tariffs
They r taxes on imported Gs.
They increase the cost of imported products, making them less competitive compared to domestic alternatives.
types: quotas
They set a limit on the Q of a specific product that can be imported.
They directly control the vol of Ms, often to protect domestic producers.
types: subsidies to domestic producers
Govs provide financial support to domestic industries, reducing CoPs.
Subsidies make domestic Gs more competitive in both domestic + international markets.
types: non-tariff barriers
These are various measures other than tariffs that restrict trade.
impact of protectionist policies: consumers
-ve impact: Protectionist policies often lead to higher prices for imported Gs due to tariffs/quotas.
+ve impact: In some cases, domestic industries may become more competitive, offering better products.
impact of protectionist policies: producers
+ve impact: Protectionism can shield domestic industries from foreign comp, helping them survive + grow.
-ve impact: Over-reliance on protection can lead to inefficiencies, reducing competitiveness in the LT.
impact of protectionist policies: govs
+ve impact: Govs can generate revenue through tariffs.
-ve impact: Protectionist policies may strain diplomatic relations + lead to retaliation by trading partners.
impact of protectionist policies: SoL
Protectionism can impact living standards by affecting the availability + affordability of Gs.
It can protect jobs but may reduce consumer choices + increase prices.
impact of protectionist policies: equity
Protectionism can exacerbate income inequality if it benefits specific industries/groups while imposing costs on others.
It may also affect global income distribution by limiting opportunities for developing countries to X.
