Audio available in app
Tariffs are used to protect domestic industries from "summary" of International Economics by Robert Carbaugh
Tariffs serve as a means of shielding domestic industries from foreign competition. By imposing a tax on imported goods, governments can make these products more expensive for consumers, thereby giving a competitive advantage to domestically produced goods. This protectionist measure aims to bolster the growth and stability of local industries, which may struggle to compete with foreign companies that benefit from lower production costs or government subsidies. The rationale behind using tariffs to safeguard domestic industries lies in the desire to prevent job losses and economic decline in key sectors of the economy. By reducing the influx of cheaper imports, tariffs can help maintain a level playing ...
Similar Posts
Sticky prices cause shortterm problems
Prices that do not adjust quickly to changes in supply and demand are called sticky prices. When prices are sticky, they can ca...
Antitrust laws should prevent collusion
Antitrust laws are designed to promote competition by preventing anticompetitive behavior such as collusion among competitors. ...
Fallacies about wealth
Many people have misconceptions about wealth and its distribution. One common fallacy is that wealth is fixed, so one person ca...
Individual rights must be respected and upheld
The central idea put forth in "The Road to Serfdom" is the importance of individual rights and freedoms in a society. According...
International trade benefits all parties
International trade is a fundamental concept in economics that has been proven to benefit all parties involved. When countries ...
Economic growth vital for business sustainability
Economic growth is a fundamental factor for ensuring the long-term sustainability of businesses. When an economy is growing, it...
Government interventions in the economy
Government interventions in the economy can take various forms, including regulations, subsidies, taxes, and restrictions. Thes...
Trade finance plays a vital role in facilitating transactions
Trade finance is an indispensable tool for businesses engaged in international trade. It serves as a crucial mechanism for faci...
Exchange rates play a crucial role in international trade
Exchange rates are a fundamental aspect of international trade. They determine the value of one country's currency in terms of ...
Discrimination against certain groups
Discrimination against certain groups is a concept that has been the subject of much debate and controversy in the field of eco...