why do you think a country would want to discourage imports even when they result in lower prices for consumers?
Answers
Because economics is politics too, which is why the subject actually used to be called “political economics”.
Flooding the home market with cheaper imports drives your local industry out of business if there is any, and prevents local industry from forming if there isn’t. That’s also how big corporations drive smaller competitors out of business on a local and national scale.
The strategy to develop your own industry and become a developed country is to import raw materials as cheaply as you can, and ban or tax foreign finished products that you want to encourage your own industry to produce. The strategy to keep other countries from developing is to force tree trade on them and make them rely on imports, so that their own industry doesn’t grow. There is also a profit motive for it on the part of the “free trade” exporter, by monopolizing the market. New, protected businesses would mean competition, and corporations don’t want that.
www.quora.com/Why-a-country-want-to-discourage-import-even-they-result-in-lower-prise-for-consumer
Answer:
Explanation:
The discouraging imports are given here.
