11/10/15
Lesson 4-Free trade & protectionism
Learning objective: Define, explain, illustrate, and give examples of types of protectionism.
DA: Give an argument for and against protectionism.
DA: Give an argument for and against protectionism.
Arguments for protectionism...
Protect domestic employment
Protecting the economy from low-cost labor
Protecting an infant (sunrise) industry. Avoid the risks of over-specialization
Strategic reasons
To prevent dumping
To protect product standard
To raise government revenue
To correct a balance of payments deficit
Arguments against protectionism...
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Illustrating free trade and protectionism: Free trade
Tariffs
Tariffs are most common type of anti-dumping measure. If dumping has taken place, then tariffs are applied to offset the cost advantage of the dumped imports. Two further outcomes:
Activity/HW:
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