types of protectionism by Silka

hayleydowns1007 — 2025-02-24 10:57:58 UTC

table 1

a tariff is a tax on imported goods and services

the importer pays the tariff to the government customer’s authority.The importer may pass the cost of the tariff on to consumers by raising prices

it’s main purpose is to:

-raise revenue

-protects the economy

it’s effective because it protects domestic industries.

pros

-job production

-onshoring of production

cons

-increase cost of imports

-reduced competition between foreign and domestic industries

2025-02-24 10:58:17 UTC

Import quotas are a limit in the amount of product that can be imported into a country. It benefits local businesses because if customers cannot outsource products they have but locally which further benefits the local economy. However it can be expensive. A pro is that it stabilises the domestic prices. A con is that there are higher price on trade being imported.

2025-02-24 10:58:52 UTC

Table 4

Domestic subsidies are government support to local industries used for protectionism.

Domestic Subsidies methods:

Cost Reduction: Subsidies lower production costs for domestic firms, making their products more competitive against imports.

Export Promotion: Some subsidies help local businesses sell their products abroad at lower prices, boosting exports.

Industry Support: They provide financial relief to struggling domestic industries, preventing job losses and economic decline.

Short-term subsidies are very effective at restoring the economy within businesses as they provide businesses with a financial boost when they need it. However long-term subsidies may not be good though as businesses may become reliant on them instead of improving the business efficiency and financial situation.

2025-02-24 10:59:33 UTC

Jermaines table

Government legislation- Laws that are made in order to regulate, authorize or outlaw.

An example is tarriffs which tax foreign competition to export into the company which protects domestic businesses from external competition

Pro- Reduces competition for domestic businesses which also aids the economy

Con- Decreases globalisation and increases cost for businesses to expand into other countries

2025-02-24 11:01:17 UTC

Table 6-

Trade tariffs refer to when a country place taxes on imported goods, these taxes aren’t applied to domestic goods. this protects domestic firms from overseas competition.

Pros: protects domestic firms

domestic firms have better ability to compete domestically

Cons: Retaliation occurs which increases the price for everyone

Increased trade deficit

why is it effective?

it protects domestic firms from foreign competitions, by increasing the price of imports. allowing higher levels of growth

2025-02-24 11:04:54 UTC

Table 5 Embargoes in business refer to government-imposed restrictions or bans on trade with specific countries or regions. These measures are typically used for political, economic, or security reasons, aiming to pressure the targeted country into compliance with certain demands or policies.

Positives:

Political Leverage: Embargoes can be a tool for exerting political pressure, encouraging countries to change undesirable policies or actions.
National Security: Embargoes can prevent the flow of sensitive goods that could threaten national security.

Drawbacks:

Economic Loss: Countries or businesses reliant on trade with the targeted nation face economic downturns and potential job losses.
Inefficiency: Embargoes often hurt innocent citizens more than the intended government or regime.

Example:

A notable example is the U.S. embargo on Cuba, which has restricted trade between the two countries for decades, limiting economic growth in Cuba but also limiting American companies' access to the Cuban market.