Why do governments enact trade barriers
Why do governments enact trade barriers?
Expert
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.
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