Question

explain how no protectionism lowers prices of imported goods and give an example of countries that use protectionism and countries that don't use protectionism and the differences in their prices of imported goods.

please link the sources used

Answer 1

The countries which follows the protectionism will promote their domestic producers and thereby encourages the domestic goods and services by various protectionist policies.There are various protectionist policies followed by the government such as 1.imposition of tariff 2.quotas 3.subsidies 4.standardization.Tariffs are imposed to reduce the imports .By imposing tariffs they will make imports costlier.Quotas are imposed to restrict the volume of imports.Subsidies are mainly negative taxes given to the domestic producers.
The countries which do not follow protectionism will encourage imports to the country and hence they will reduce the price of the imports .The countries which uses protectionism will reduce the imports and make the price of imports costlier as compared to the countries which are not imposing protectionism and thus become less competitive in the international trade.An example for the protectionism is the Common Agricultural policy of the European Union.Common Ahricultural Policy helps the domestic farmers to increase their production and protects the farmers of Europe from imported agricultural products.
U.S imposes more number of protectionist measures than the other countries.