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

5th Edition

ISBN: 9781319098780

Author: Paul Krugman, Robin Wells

Publisher: Worth Publishers

See similar textbooks

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Chapter 8, Problem cWYWL

Chapter 8, Problem eWYWL

Knowledge Booster

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education