Question

explain how trade restrictions (quotas, import duties, etc.) imposed in any specific country have different consequences for different economic actors (consumers, employers, and workers). You should be able to explain that any step to impose or lift trade restrictions will help some while also hindering others.

Answer 1

Trade barriers are the restrictions induced by government with the motive of restricting other countries to have trade with the country. In general, trade restriction, creates economic inefficiency. The only way of escaping is implementing free trade policy across the globe.

Eventually, less developed countries have trade barriers in order to protect domestic production from the outside country club. Trade restrictions on food import leads to over-production. Some trade barriers are licensing on import and export, subsidies, currency devaluation etc.

By trade restriction, government means to impose tax in order to regulate trade of the nation with other countries. Trade barriers are executed in order to prevent consumers, domestic employment and infant or small scale or medium scale industries.

Government can impose restriction in form of tax while trading a specific product from other country, if it can be dangerous for the consumer use. Similarly, trade regulations can be seen to prevent infant industries or encouraging domestic production over foreign products.

Tariff on a imported commodity will be imposed in order to protect infant domestic industries; which in turn will increase imported good price and will simultaneously create market for domestically produced good and even generate domestic employment.