Protect Me? Essay

Protectionism by way of the price mechanisms such as tariffs, subsides, quotas, export licences and import duties (Rugman, 2009) are just some of the measures which can seriously impact on a foreign company. For example the American steel industry was afforded protection under the Bush administration when large tariffs were imposed on foreign steel imports in order to safeguard the jobs of the national steel workers (Mankiw and Taylor, 2008).

Tariffs are perhaps the most common way to restrict, or at least slightly discourage, foreign imports.

Although tariffs usually cause domestic prices to increase they can have a positive effect on our economy and specifically our domestic producers of steel and their employees. The US trade policy has historically been protectionist in nature, and congress, the principle body of power for import policy, heavily favored domestic firms over their foreign competitors (Irwin 146). As a result, domestic steel producers have had tariffs and quotas in place for many years. An effective tariff raises revenue for our US government and can help to subsidize domestic production at the expense of foreign producers. This is good because the American government receives money from foreign exporters that it would not have otherwise had access to. This money can then be used in domestic government policies and could

The main methods of protection used by governments are tariffs, subsidies, local content rules, quotas and export incentives. Tariffs are a tax placed on imported goods, imposed for the purpose of protecting Australian industries. The economic effects of the tariff include consumers paying a higher price while receiving few goods, redistributing income away from the consumer to the

Trade policies are developed by foreign and domestic governments in an effort to influence net imports or net exports (Cengage, 2009). Two common policies are the use of tariffs and import quotas. As XYZ expands into Asia, Mexico and Canada it will want to factor the costs of tariffs and the possible effects of the limitations of import quotas. What is interesting is that the basic premises of supply and demand, imports and exports, equilibriums and trade balances are all meant to lead to an efficient market place (Cengage, 2009). Tariffs, wage restrictions, quotas and other such policies can create inefficient markets. So XYZ will have to take the basic study of economics and then apply the effects of various trade policies and restrictions. Another factor of government that influences the

they are taxes that are levied on imports and exports. its encourages trade between countries

(3) Reducing the value of the dollar against foreign currencies. That mean selling dollar would cause the value of the dollar to fall. When the value of the dollar falls it makes U.S. imports more expensive, therefore the demanded of imports will fall.

In my opinion, the first reason is to protect the safety of its consumers. If the imported products are not quality products and government feels it is a threat to its people, it may impose

The question of whether the U.S. should adopt a free international trade policy is a hotly debated one. Currently, the U.S. has a relatively open trade policy and enjoys free trade with twenty countries1 and more are being added to this list through new agreements. But does it benefit from free trade? Evidence, which I will present in this paper, show that the benefits of free trade highly outweigh the little and often misinterpreted disadvantages. In light of this, the U.S. should adopt a free trade policy and look forward to new trade agreements.

Trade barriers to trade can be categorized into two different types, tariff and nontariff barriers. Tariff barriers are taxes that are put into place in order to increase the price of imports inside the country that the product is being imported into. This allows for the domestic companies to gain a competitive advantage by ultimately reducing competition from foreign producers. Tariff are not only put on import but exports as well. This will increase revenue and will also keep product/technology within the country in the name of national safety or defense. An example of this can be seen in the United States agriculture. The

According to Essentials of Economics, a tariff is a form of excise tax, one that is levied only on sales of imported goods (Krugman, Wells, and Graddy 538). Tariffs are generally imposed for two purposes, to protect domestic industries and as a source of revenue (Tariff). The effect of a tariff on a small or a large country would be higher domestic prices because the cost of the tariff is passed on to the consumer (The Basic Analysis of a Tariff). Consumers would be deterred from buying that particular import because of the cost factor. It would also cause there to be a surplus of that import. A high tariff on imports would have the effect of switching from imported goods to goods produced domestically;

North American industries are defenseless and vulnerable upon their entry into the world market. They are weak due to a variety of market challenges and economic pressures; therefore, we have to protect our young industries. For example, using protective tariffs and taxes adds costs for the foreign competitor sales process, and while it may give our young industries a chance to get started, it also tends to increase the costs of production and pricing as the industry grows. There are many possible forms of protections for young industries, all of which are designed to raise the cost of buying foreign goods and increase the profits of politically connected domestic industries. “When high tariffs are levied by

Among the trilogy of trade remedy regimes- countervailing duty, safeguard and antidumping actions- antidumping actions are by far the remedy of choice. It 's a measure internationally adopted to stop unfair competition, regulate international market order and protect the security of the national industries. It 's adopted by an increasing number of countries as it 's playing an increasingly important role in international trade. It 's perhaps the most controversial subject involving foreign trade. The United States is the world 's biggest user of antidumping and has been for decades. China, on the other hand, has been the number-one target of antidumping by most countries for the past

Economic policy of nations and states, tariffs are tools used to control the flow of goods, services and resources being brought into the country. The overall purpose is to create security for the domestic industry from the imported product. These products can sometimes be less expensive to purchase than the goods being manufactured in the local economy. (McEachern, 2015) The government does this either stimulate or deflate trade with other countries. (Fontinelle, 2012)

Persistent unemployment pushes many groups to call for protectionism; one of the most effective is organized labor. By limiting imports, local jobs are retained as firms and consumers are forced to purchase domestically produced goods and services. However, unless the protectionist country is relatively small, such measures usually do little to limit unemployment. On the other hand, they may result in a decline in export-related jobs because of (i) price increases for components or (ii) lower incomes abroad. Further, such measures are likely to lead to retaliation unless either the protectionist or the affected country is relatively small. Thus, governments must carefully balance the costs of higher prices with the costs of unemployment and the displaced production that would result from freer trade when enacting such measures.