Question

Who benefits from a tariff or quota? Who loses? What are the positives and negatives of protectionist trade policies? Which policy is best right now?

Answer 1

tariffs are taxes on imported goods

• increases the good's price in domestic market
• GOvernment benefit from tariffs
• That is by collecting revenue from tax

Consumers loses by the tariff or quota

That is because the more the imported goods, due to the tariff rate increases

This result in consumers to buy less goods

domestic and foreign producers benefit by receiving higher prices

Positives and negatives of trade protectionist policies

• Trade protectionism is a type of policy that limits unfair competition from foreign industries as well
• It works in the short run
• Bad to use in long run
• produces countries competitiveness to be low in trade
• Protects the country from foriegn trade policies
• Provides the decrease in unemployment , due to tarrif they provide choice for local lads
• It weakens the industry in long run
• Lack of quality and inreased expense

Best policy

• national patent systems as a cloak for protectionist trade policies is the best choice
• when patents held by one country form part of a system of exploitable relative advantage in trade negotiations against another
• There are advantages for states to be seen to be sticking to IP systems
• good citizenship status

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