--%>

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 : Expansion of preschool programs for

    Use the circular flow model to confirm this assertion for an expansion of preschool programs for disadvantaged children?

  • Q : Illustrate Measuring unemployment

    Illustrate Measuring unemployment?

  • Q : Describe GDP gap and Okun’s Law

    Describe GDP gap and Okun’s Law?

  • Q : Define explicit cost and implicit cost

    Briefly describe the term explicit cost and implicit cost?

  • Q : Independent queue vs. pooled queue

    Instruction: McDonald's vs. Burger King - these two fast food chains use different waiting line design: Independent queue vs. pooled queue. To compare the two different queue systems on equal footing, let's assume that we pick a McDonald's sto

  • Q : When productive resources are utilized

    While productive resources are utilized efficiently: (w) prices greatly exceed production costs for current outputs. (x) opportunity costs are at their minimums for all goods. (y) domestic production exceeds the value of foreign output. (z) the value

  • Q : What is an Economic Territory Economic

    Economic Territory: This refers to the region of a country where there is a free movement of goods, capital and human resources.

  • Q : Economic Why are democratic regimes

    Why are democratic regimes more conducive to economic growth than dictatorship

  • Q : Neoclassical and heterodox production

    One of my friends can't discover the answer of this question. Give solution of this question. Neoclassical production and cost theory is more realistic than and cost theory and heterodox production. Discuss.

  • Q : State of good or service at last unit

    Which of the given describes a situation in which each good or service is produced up to the point where the last unit gives a marginal benefit to consumers equivalent to the marginal cost of producing this? w) productive efficiency.