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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why may Governments impose Trade Barriers?

Author: eric_galvao



Answer:

-Protect Jobs: Risk that Job Losses become too Great if Domestic Firms are Outcompeted by Foreign Firms -Protect Infant Industries: They are just starting out in Developing Economies, and may not have the Resources and Experience to stand up to Foreign Competition -Ban Certain Goods, as due to Security or Culture -Avoiding Overdependence, as it can lead to Economic Instability -Protecting against Dumping - Firms sell Goods abroad at a Price that's Below Production of Costs to force Domestic Firms into Bankruptcy -Correcting Imbalances in the Balance of Payments


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