PLCY 110 Lecture Notes - Lecture 23: Tariffs In United States History, Procyclical And Countercyclical, High Fructose Corn Syrup
Document Summary
Long-term losses: subsidies, a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive, quotas. Set cap on imports: example: china - specific threadcount shirts, tariffs. Tax on imports: more expensive to buy what is brought in from other countries, insulating from labor market competition. Lower revenue to foreign producers: consumers choose foreign goods less, more purchases of domestic alternatives, if policy is successful and set prices high enough, overall goal. Lower consumption: because you"ve raised price of individual thing over market rate. Fewer of them purchased: examples, oil, cheese, cars. To incentivize consumers to buy domestically produced goods: effects, higher prices to consumers, limiting competition fewer choices paying more. Lower revenue to foreign producers: higher revenue to domestic producers, more purchases of domestic alternatives.
