Name and Number of the Course Date ECONOMIC PROTECTIONISM Introduction “Laws aimed at insulating the state from interstate competition involve what the Court has called simple Economic Protectionism” (May & Ides 350). However, under the dormant Commerce Clause such laws are invalid…
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Economic protectionist laws are struck down on the basis that the state has not used a more equitable means of achieving its goal. Thesis Statement: The purpose of this paper is to investigate economic protectionism, explain the rationale for governments implementing protectionist policies and evaluate whether these policies were successful or otherwise. Economic Protectionism: Its Rationale and Extent of Success An economic protectionist law is one that is enacted to shield locals from out-of-state competition. For example, when the purpose of a law is to shield Alaska’s infant timber processing industry from the effects of interstate and foreign competition, it is deemed as invalid. Similarly, a state’s labeling law in the apple growing industry would be considered to be economic protectionist if it were meant to prevent apple growers in other states from selling their fruits in the former state. Thus, where economic protectionism is a law’s ultimate goal, the measure can be held to be unfounded. However, if the apple growing state argues that requiring the use of a specific grade is a reasonable method to protect consumers against fraud and deception, the court would most likely accept this argument (May & Ides 350). On the other hand, ecomomic protectionism is also considered to be damaging if it is merely a means, a stepping-stone, or an intermediate goal towards the attainment of a legitimate end. For example, “a genuine quarantine law that bans the importation of diseased crops or animals is not economic protectionism if it was adopted for health reasons” (May & Ides 352) even though it has the incidental effect of shielding local sellers from competion from other states. Although quarantine laws are not invalid in themselves, they may be invalidated if they fail to meet one of the other requirements of the dominant Commerce Clause analysis. The Argument Against Economic Protectionism Support for continued trade liberalization may be declining, as the results from recent polls and political rhetoric suggest. This development is a matter of concern. A shift away from comparatively open global trading system that is currently in place would enforce substantial economic losses to most countries. International trade raises the standard of living in all countries. Consumer well-being is increased by lower prices on imported products and greater variety of products available in the market. Further, production efficiency is improved by specialization based on comparative advantage and increased competition from foreign businesses, thereby raising the country’s gross domestic product (GDP). Firms also get access to foreign capital goods that generally contain new technologies; this further improves productivity (Kroll 9-10). In relation to the effect on jobs and wages impacted by international trade, the evidence indicates that trade can lead to the displacement of workers in industries that compete with imports. On the other hand, this adverse outcome is relatively small in comparison to overall increase in employment opportunities. In the United States although displaced workers face adjustment costs, overall the country “has experienced robust total employment growth in the presence of expanded trade”
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“Economic Protectionism Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1437775-what-do-you-understand-by-economic-protectionism.
He emphasized upon the aspect of freedom. While in England for a short while, he wrote Economic Sophisms, which were a collection of his dialogues and sarcastic writings with an intention of criticizing the fallacy driven French economic ideas. He wrote most of his works in and around 1848 when France was gradually accepting socialism.
What do you understand by economic protectionism?
Free trade is restricted with the help of various import duties, tariffs and also quantitative restrictions known as quotas. Implementation of such policy is for giving an opportunity to the domestic industries so that they can grow up in terms of efficiency and compete at the international level with their foreign counterparts.
Economic protectionism can be achieved through measures such as the imposition of import tariffs, which will mostly depend upon the situation of the economy. A country in great need of a particular commodity will rather lower the rate of tariffs charged on imported goods in order to encourage importation of a given commodity.
As the global economic slow began to shed its effect, major economies began to resort on the protectionist measures. Protectionism is not only a problem at the national level, and European Union was inclined to use the policies to regulate certain issues (Ringe and Bernitz, p.
The government is not discriminating against the imports or in the other terms they interfere with the imports but it is giving certain freeness to the international trade especially for the import of many trades.
Actually it is made to protect the domestic producers or in the other words it is made for the people to be more beneficial by purchasing the imported goods through foreign trade so that the cost of the good becomes cheaper when produced by a domestic manufacturer and purchasing that by the people.
in the last decade exchanging the goods and services based on the basic tenets of Ricardo’s theory of comparative advantage; however, current high level of unemployment in many developed nations has made them rethink with the free trade policies that are in force since last
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The uniqueness of these countries tends to be witnessed through various channels including the film industry. However, in the recent times, the US has come under intense pressure because of the seemingly propagation of its culture to other nations. Normally, this happens
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