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19 download_doc-17.php - G202(3/23/2009)...

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G202 (3/23/2009) Why do Nations Adopt Trade Restrictions? National Defense Reasons. The good is essential for national defense. Retaliation against dumping. Dumping: sale of goods at prices lower than production costs in foreign  markets. Infant Industry Argument. New domestic industries need to be protected. Special Interests Influences. Businesses try to gain market power over competitors. Businesses try to save jobs and stop creative destruction.  Do Trade Restrictions Save Jobs? Imports and Exports are linked through income creation. Restrict Imports, and exports will also fall.  Jobs will be lost in the exporting industries.
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This note was uploaded on 04/18/2011 for the course BUS 202 taught by Professor Kreft during the Winter '09 term at Indiana.

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