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Protectionist Trade Legislation

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by

Karthika Appiah

on 23 April 2013

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Transcript of Protectionist Trade Legislation

Protectionist Trade Legislation WHAT IS protectionism? FAIR
COMPETITION TARIFFS QUOTAS OTHER KARTHIKA | ANDY | JULIANA SUBSIDIES trade opening since or $9,000 per household 1945 has boosted US annual incomes by $1 trillion according to the US government were eliminated, BARRIERS to world trade IF the global welfare gain $2.1 trillion would be PROS CONS domestic protect jobs 1. protect important industries 3. protect industries infant 4. lower unhealthy deficits trade 2. 5. anti-dumping measures 6. source revenue of prices higher slow economic growth retaliation inefficient limiting consumer freedom the lower quality hurting of goods CHINA Obama and Chinese
Tire Imports NAFTA United States, Canada, Mexico trading agreement HISTORY FREE TRADE Before After Great Depression High Trade Barriers Unemploy-ment Law of Comparative
Advantage Gain is maximized for all nations when one nation specializes in producing those products for which it has the greatest economic edge " " Better resource allocation 1930: Smoot-Hawley
Tariff Act poor WWII WWII General Trend lower trade barriers General Agreement on Trade and Tariffs WTO limiting
foreign goods
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