It may seem odd

It may seem odd -...

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It may seem odd, but governments often step in to restrict trade. Why might a  government want to restrict trade? If domestic industries cannot compete against foreign  industries, the government will restrict trade to help the domestic industries develop.  Governments may also restrict trade to foster business at home rather than encouraging  business to move out of the country. These protectionist policies encourage prices to  stay high and help domestic industries to develop.  Trade Interferences  Governments three primary means to restrict trade: quota systems; tariffs; and  subsidies.  A quota system imposes restrictions on the specific number of goods imported into a  country. Quota systems allow governments to control the quantity of imports to help  protect domestic industries.  Tariffs are fees paid on imported goods. Tariffs increase the price that consumers pay 
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This note was uploaded on 12/13/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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