4.2 Free Trade and Protectionism

Definition of free trade NONE YET

Types of Protectionism


Quotas http://opengecko.com/economics/tariffs-quotas-and-subsidies/
Subsidies http://opengecko.com/economics/tariffs-quotas-and-subsidies/
Voluntary Export Restraints (VERs) NONE YET
Administrative obstacles NONE YET
Health and safety standards NONE YET
Environmental standards NONE YET

Arguments for Protectionism

Infant industry argument

Efforts of a developing country to diversify NONE YET
Protection of employment NONE YET
Source of government revenue http://opengecko.com/economics/tariffs-quotas-and-subsidies/
Strategic arguments NONE YET
Means to overcome a balance of payments disequilibrium NONE YET
Anti-dumping NONE YET

Arguments against Protectionism

Inefficiency of resource allocation

Costs of long-run reliance on protectionist methods NONE YET
Increased prices of goods and services to consumers http://opengecko.com/economics/tariffs-quotas-and-subsidies/
The cost effect of protected imports on export competitiveness NONE YET
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