The Arsenal of Trade Weaponry
Trade policy instruments are designed with one thing in mind:
protectionism. Most are unambiguously pro-domestic producer and
anti-consumer. Domestic producers mainly gain due to greater
protection from foreign competition, whereas consumers lose by
facing higher prices and lower product variety.
Governments intervene in international trade for political and
economic reasons. Choices are abundant when selecting from the
"arsenal" of trade weapons, including tariffs, subsidies, import
quotas, voluntary export restraints (VERs), local content
requirements (LCRs), administrative...