Trade Protectionism and Tax Yee Law

These flashcards cover the key concepts related to trade protectionism and its implications for domestic production and competition.

What is trade protectionism?

The use of barriers such as import duties and subsidies for home products to increase the price of imports and protect domestic production.

How can subsidies affect domestic production?

Subsidies can lower the cost of domestic products, making them more competitive against imports.

What is an example of trade protectionism mentioned in the notes?

The example refers to Italian tomatoes being subsidized to protect Italian tomato farmers from competition with Senegalese tomato farmers.

What is the effect of import duties on foreign products?

Import duties make foreign products more expensive, which can protect domestic industries from foreign competition.

What is the role of the EU in trade protectionism as per the notes?

The EU may subsidize domestic products, affecting the pricing and competition of imports.