Question

EXPLAIN HOW TWO METHOS OF TRADE PROTECTION MAY REDUCE IMPORTS?

Answer 1

Answer:

Trade protectionism is a policy that protects domestic industries from unfair competition from foreign ones. The four primary tools are tariffs, subsidies, quotas, and currency manipulation.1

Protectionism is a politically motivated defensive measure. In the short run, it works. But it is very destructive in the long term. It makes the country and its industries less competitive in international trade.

Explanation:

Main Forms of Protectionism

• Tariffs. A tariff a tax or duty that raises the price of imported products and causes a contraction in domestic demand and an expansion in domestic supply. .
• Quotas. ...

Export subsidies. .. Domestic subsidies. ...

Import licensing. ...

Exchange controls. ...

Financial protectionism. ...

Murky or hidden protectionism.