Question

Who gains and who loses from import restrictions?

Answer 1

*ANSWER ::

=> Import Restrictions Include Tariff And Non-Tariff Restriction On Imported Goods From Other Country By Domestic Countries Which Import Goods From Foreign Country.

=> Import Restriction Increased The Price Of goods or Make Some Barriers For It To Sell Easily. Import Restriction Usually Use To Protect Domestic Industry And Make them More Competitive In Global Market. If Import Restriction Decrease Import From Other Countries In Thr Domestic Country It Benefit For Domestic Producers Who Increase Their Production And Increase Their Export In Global Market Also And Competition Increase In domestic Firms So They Produce goods Effectively It Makes Competitive Environment In Domestic Country.

=> Import Restriction Cause Price Rise In Imported Goods So In Domestic Country Consumer Are Not Buy Imported Goods They Consume Goods that Produce In Their Country Because Their Price Is Lower Than Imported goods so it benefit Domestic Seller and Losses For Foreign Seller Because their Export Decreased Because Of The Tariff Barriers And It Benefit The Domestic Seller Because It Increase Its Sell And Also They Export Their Goods In Global Market And Earn More Profit It Increase Producer Surplus and Revenue.

=> So, In Import Restriction Domestic Seller/Domestic Country Gain And Foreign Exporter/Foreign Country Have Losses Because Their Export Decline.