Protectionism

Profile

of restraining trade between states

tariffs on imported goods
such as restrictive quotas
economic other restrictive government regulations
a. policy
through methods discourage imports
foreign take-over
designed to
prevent markets
of local
companies

Is closely aligned with anti-globalization

b.
contrasts with free trade

a. Tariffs
b. Import quotas
food safety
Administrative
regarding environmental standards
c. Barriers
electrical safety

Types of d. Anti-dumping legislation

Trade e. Direct Subsidies
barriers f. Export Subsidies
g. Exchange Rate manipulation
Protectionist
policies a. A government may intervene in the foreign exchange market

to lower the value of its currency

by selling its currency in the foreign exchange market.

raise the cost of imports

Doing so will
b. lower the cost of exports
leading to an improvement in its trade balance

This policy is only effective in the short run

It will lead to higher price inflation in the country
c.
raise the cost of exports
which will in turn
reduce the relative price of imports

of a manufacturer in one country

a product to another country
the act the price it charges
exporting either below
Dumping at a price which is in its home market
or below its costs of production
often referred to as selling at less than "fair value."

Trade barriers III.mmap - 19/04/2009 - Carlos Mondragón