Economics of Public Issues (19th Edition)
19th Edition
ISBN: 9780134020532
Author: Miller
Publisher: PEARSON
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Question
Chapter 31, Problem 1DQ
To determine
To Identify:
Who gains and who loses from import restrictions?
Expert Solution & Answer
Explanation of Solution
- The import restrictions are imposed to protect the domestic industries from foreign competition. These restrictions are imposed in the form of tariff or quota.
- Domestic industries competing with the imports are the main beneficiaries of import restrictions. Thus, they are benefitted the most from import quotas.
- However, the consumers and the exporting countries suffer because of the import quotas, as the consumers lose the chance to choose from a wider range of varieties at the best prices and the exporters lose the chance to
gain from trade .
Economics Concept Introduction
Concept introduction:
Export:
Export refers to an economic activity in which goods and services produced within the country are sold to foreign countries at the foreign exchange rate.
Import:
Import refers to an economic activity in which goods and services are purchased by a country from a foreign country at the foreign exchange rate.
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Chapter 31 Solutions
Economics of Public Issues (19th Edition)
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