BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

Solutions

Chapter
Section
BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

Why might the unsafe consumer products argument be a more effective strategy (from the perspective of the importing country) than using tariffs or quotas to restrict imports?

To determine

The use of unsafe consumer products argument can prove to be an effective strategy as compared to using quotas or tariffs to restrict imports from the point of view of the importing country.

Explanation

Protectionism refers to the policy of the government of a country restricting free trade for various purposes. Protectionism is practiced for protecting domestic producers and workers from foreign competition. It is generally followed by developing countries to shield small producers. Both import quotas and tariffs are forms of protectionism.

Protectionism based on unsafe consumer products: When a country restricts imports based on consumers’ safety standards, it is called the unsafe consumer products argument. WTO allows every country to establish its own consumer safety standards. However, WTO also mandates scientific grounds for such standards, i.e. these standards should be genuine. Also, it has been prohibited by WTO that countries set one set of standards for itself and other standards for other countries.

Import quota is a quantitative barrier to trade through which government restricts the quantity of import of a certain commodity to protect domestic producers from foreign competition. In this case, government puts a direct restriction on the quantity of a good that can be imported...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities. Compounding occurs once a year. ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Explain why an employee whose gross salary is 20,000 costs an employer more than 20,000 to employ.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

How are direct-mail and e-mail sales messages similar, and how are they different?

Essentials of Business Communication (MindTap Course List)

Discuss the advantages and disadvantages of partial measures of productivity.

Cornerstones of Cost Management (Cornerstones Series)

In what ways can informal groups affect a business?

Foundations of Business (MindTap Course List)