ECON 13 Lecture Notes - Lecture 8: Protectionism, Child Labour, Multinational Corporation
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3 tools to restricting flow of trade: 1. When countries place limitations on imports from abroad, regardless of whether it uses tariffs, quotas, or nontariff barriers, it is said to be practicing protectionism. In october 2010, 53% of americans believed that trade is hurting us economy compared to 46% 3 years earlier and 32% in 1999. Reasons to growing opposition to trade: slow economic recovery, high unemployment, us multinational corporation intent to invest overseas instead of domestically. Economists argue that jobs loss in one industry is compensated by job creation in another industry. Very costly to consumers to save jobs (through tariffs or quotas) Protectionism: an indirect subsidy from consumers to producers. Protectionism will raise price of protected good in domestic market. Which causes domestic consumers to pay more but benefits producers. International trade and its effects on jobs, wages, and working conditions.
