Barriers to Trade

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Barriers to Trade
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International Trade
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Barriers to Trade

• Quotas
• Tariffs
• Subsidy
• What are the arguments for and against
  protectionists policies?

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Part A Quotas
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Part B Tariffs
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Part C Export Subsidies
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Evaluating the Arguments for Protectionism

• Have a self-sufficient military.
• Increase domestic employment -preserve jobs
• Level the playing field-protect American workers
  from cheap foreign labor
• Protect against dumping and predatory business
  practices.
• Help infant industries
• Diversify the economy/ be independent

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Last Thoughts

• Cheap imports are good for a countrys consumers
  but domestic producers may be hurt.
• Labor is cheap where productivity is low
  (PMRP) expensive where productivity is high.
• Under most circumstances trade enhances out
  standard of living.