--%>

Why do governments enact trade barriers

Why do governments enact trade barriers?

E

Expert

Verified

1. They don’t understand the benefits from international trade and see only the damage in certain industries that can’t compete successfully with imports.

2. Political considerations are important because consumers don’t see the effects of a tariff or quota directly, but they do see the impact of import competition on some workers.  Also, the benefits of free trade tend to be spread among all consumers, but the benefits of a protective policy are realized almost immediately in the short run by the affected industry may have a large and vocal stake in the outcome.

   Related Questions in Business Economics

  • Q : What are economic resources What are

    What are economic resources? What are the major functions of the entrepreneur?

  • Q : Distinguish between the resource market

    Distinguish between the resource market and product market in the circular flow model.  In what way are businesses and households both sellers and buyers in this model?  What are the flows in the circular flow model?

  • Q : Utility with food coupons Question: In

    Question: In Vancouver the Salvation Army encourages people to make food voucher donations to panhandlers instead of simply giving them cash. You can buy a food voucher for $5 and give it to a panhandler who can use it to purchase food. The Sa

  • Q : Current Account captures international

    Question The Current Account captures international fund flows due to net income on (past) investments, net transfers, and i._______________________________, general

  • Q : Introduction of the term Financial

    Give a brief introduction of the term Financial Leverage?

  • Q : Example of simultaneous changes in both

    Elucidate an example of simultaneous changes in both supply and demand?

  • Q : Discuss the economic aspects of ticket

    Discuss the economic aspects of ticket scalping also identifying the gainers and losers?

  • Q : Economics chapter 1 Suppose that on the

    Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr

  • Q : Characterized contestable markets

    Industries that are described as "contestable": (w) will experience long-run economic profits equal to zero. (x) are difficult for firms to enter, but not to exit. (y) are difficult for firms to exit, but not to enter. (z) will charge prices greater t

  • Q : Main philosophical foundations of

    Jeremy Bentham’s musings given main philosophical foundations for: (1) the abolition of slavery. (2) syndicalism. (3) free international trade. (4) feudalism. (5) utilitarianism. Can someone explain/help me w