I think they mean from the protectionist standpoint

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^ I think they mean from the protectionist standpoint that they want higher tariffs on imports because then Americans will buy less imported stuff and more domestic stuff. Just a thought thank you so much Also if you put a tariffs on an imported good, that particular good will be more expensive to consumers Interest: domestic “keep things within the US border” Producers win and consumers lose from protection Redistributive effect- income is redistributed from domestic consumers to the protected domestic industry Tariff Tax imposed on imports raises the price of the import directly, so that the consumer of the imported good has to pay more for it Quantitative Restrictions quotas limits the quantity of a foreign good that can be sold domestically nontariff barriers to trade Obstacles to imports other than tariffs; measures that discriminate against foreign goods or services Example: Japan banned foreign rice imports, claiming that rice not produced in Japan was “violating culture”. Therefore, Japanese citizens could only purchase domestically produced rice. (A form of protectionism) trade barriers Any government limitation on the international exchange of goods Tariffs Quantitative Restrictions Import Licenses Economic Interests and Trade Policy
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Stolper-Samuelson Theorem If a country imports goods that make intensive use of its scarce factor, then limiting imports will help that factor In labor scarce countries, labor benefits from protection and loses from trade liberalization (USA) Example: The U.S. has a lot of capital, but scarce unskilled labor. Therefore, the U.S. imports labor-intensive goods, such as clothing and furniture. Protection restricts the American supply of these products and raises their price.This, in turn, increases American production of these labor-intensive products, raises the American demand for unskilled labor, and helps American unskilled workers (who own the scarce factor---labor). Also, protection in land-scarce countries helps farmers and hurts workers and owners of capital. Trade benefits the scarce factor of production Bangladesh- protection in capital -scarce countries helps owners of capital and hurt workers; investors support protection and workers oppose it Identify individual interests over trade and track responses Greater trade, benefits comparatively advantaged factors Greater trade, hurts comparatively disadvantaged factors Individuals who gain from trade, support trade liberalization Individuals who lose from trade, support trade protectionism Ricardo- Viner (Specific-factors) model A model of trade relations that emphasizes the sector in which factors of production are employed rather than the nature of the factor itself Representation of interests through Political Institutions Overcoming Problems of Strategic Interaction small numbers (number of players) more information
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