MKT 310 Lecture Notes - Lecture 6: Protectionism, Comparative Advantage, Direct Tax
Document Summary
In 2014, 63% of indian marriages were arranged: other studies show that only 5% of marriages are true love, divorce rates are lower for arranged marriages. Protectionism: is at odds with the theory of comparative advantage. Defensive rationale: protection of the national economy, protection of an infant industry. Industry that is just getting off the ground. Short period of time: national security, national culture and identity. National culture: idea of free cows (sacred cows: become free when they get too old to be milked. Tariffs: a tariff is a tax levied by countries on products exported by their own companies: types of tariffs. Export tariff: taxes levied by countries on products exported by their own companies. Nontariff trade barriers: refers to government policies or measures that restrict trade without imposing direct tax of duty. Government regulations: quotas: most regressive, reduces supply, tariffs: second most regressive, generates revenue, subsidies: least regressive.
