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Restrictions such as Tariffs, Anti-Dumping Policies etc.

2007-03-22 05:03:31 · 2 answers · asked by Kristal R 1 in Social Science Economics

2 answers

tariffs can be seen as a sort of subsidy to the home countries industries. It is therefore fundamentally a form of protectionism. Protectionism is seen by economists as undesirable because better/cheaper products made overseas are not allowed to compete on even ground with locally made products. By raising tariffs, the government denies consumers the best bargain, as they are forced to choose between the artifically high prices (tariffed) foreign good and the locally produced goods (which may or may not be inferior to the foreign one).
Anti-Dumping is a word used to describe the import of a large number of cheaper or better quality goods from abroad that outcompete the domestic producers by so much that they threaten the local industry. Dumping can also be seen as an attempt by foreign governments to destroy a local market in another country by temporarily reducing the price of their goods, and then raising the prices once the local market is eliminated. Ant-Dumping laws try to deal with this problem by restrcting the number of goods that can be imported. Alhough anti-dumping laws can be seen as economically prudent and beneficial to consumers and producers, these laws are often used as protectionist measures under the guise of protecting consumers and local producers from unscrupulous foreign sellers.

2007-03-22 06:19:52 · answer #1 · answered by brad p 2 · 0 0

Keeps more production in the native country by limiting imports.

2007-03-22 05:07:29 · answer #2 · answered by Santa Barbara 7 · 0 0

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