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Quotas And Regulations Of Foreign Trades

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quotas and regulations to restrict foreign trades and to discourage importation of certain goods into the country in order to protect and promote domestic markets. Protectionism is often seen as a hindrance to free trade because it isolates and hinders some foreign industries which are willing to compete against domestic industries (Shah, 2010).
While Free trade can be described as when government put in place policies which allow overseas companies to freely trade or sell their products in our country (Shah, 2010).

Free Trade Protectionism
a. It paves way for cooperation. It protects domestic industries and their workers by imposing tariffs on competing foreign goods.
b. It encourages transparency and healthy competition It makes the production prices high and leaves the consumers with less chance to makes choices in what they buy.
c. It opens markets for developing countries and reduces consumers’ prices. It leads to jealousy and ill will.
d. It lifts barriers to allow free flow of trade between two or more countries. Government uses protectionist economic policies to restrict imports and exports.
e. It helps the economic growth of developing countries by increasing trade for the nation. It takes many shapes and sometimes countries cry foul as they are made to suffer hardship which cannot be proved.
(Olivia, 2011).
(Olivia, 2011).

Tariff: can be defined as the tax which the government imposes on imported goods and services to make their prices high or expensive so as
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