PPGC67H3 Lecture Notes - The Way Forward, General Agreement On Tariffs And Trade, North American Free Trade Agreement
Document Summary
Trade and industrial policy in an era of. Industrial policy: laws/regulations which aim to encourage the development of a particular industry or industries and enhance economic development and increase standards of living. Historically, entailed the active protection of infant industries . Policy instruments used typically included tariffs and subsidies. Tariffs are taxes on imports raise the prices of imported goods, making domestically manufactured good s more competitive. Subsidies are used to encourage the development of domestic industries by lowering the cost of producing a good. Canada"s participation in wto and entry into agreements such as nafta limits use of active industrial policies. Raises questions about the scope of contemporary industrial policy. Governments have long relied on industrial policy to encourage the development of domestic manufacturers. Early industrializers, such britain, germany, the usa, and canada protected their infant industries through high tariff barriers.