Explanation The government implements protectionism by imposing restrictions through various means like tariffs and import quotas, Tariffs are of 3 types which are also called import duties they are Scientific Tariffs Peril point Tariff Retaliatory Tariffs These tariffs are charged and collected by the government to raise the price of products and services which are imported to equal or exceed the domestic price. Import Quotas: These are restriction imposed by the governments on the import of goods. Quotas are non-tariff barriers that reduce or limit the quantity of goods that can be imported into a country in a specific period of time. This helps to raise prices and allow domestic businesses to capitalize on the unmet demands. Quotas help in preventing “Dumping” and “Embargo”. Though these measure help in developing and sustaining domestic growth for a short term, these restrictions, according to critics, create inefficiency in the longer run. They argue that tariffs and quotas lead to slowing down of the economic growth...

The inefficiency created by tariffs and import quotas Trade protectionism: Trade protectionism refers to the policies and steps taken by the government to restrict or control foreign competition to help protect and nurture domestic businesses and provide better employment opportunities to its people.

Microeconomics:

4th Edition

ISBN: 9781464143878

Author: Paul Krugman

Publisher: Worth Publishers

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Chapter 8, Problem dWYWL

To determine

To write:

The inefficiency created by tariffs and import quotas

Trade protectionism:

Trade protectionism refers to the policies and steps taken by the government to restrict or control foreign competition to help protect and nurture domestic businesses and provide better employment opportunities to its people.

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