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Unformatted text preview: Protecting the income stream for a given country is what the tariff and quota is used for. The home company gains revenues, but the home consumer pays a higher price for the products produced in this country. The loss for the tariff and quotas is the trade restriction that hurts the United States and world economies. Another loss is that it is not beneficial to the American public. It is only advantageous to the domestic corporation that produces competing goods. They can inflate their prices for like services and products as a result of the tariffs and quotas being in place. These tariffs and quotas artificially reduce the demand curve. International trade is an economic stimulator from the consumer viewpoint. Loretta Campbell 03/31/2011...
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This note was uploaded on 05/29/2011 for the course POS 110 taught by Professor Britt,j during the Spring '10 term at University of Phoenix.
- Spring '10