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GLOBAL TRADING
ENVIRONMENT
WORLD TRADE AND
PROTECTIONISM
• In economics, protectionism is the economic policy of
restraining trade between states (countries) through methods such as tariffs
on imported goods, restrictive quotas, and a variety of other government
regulations.
• In the short run, it works. But it is very destructive in the long term.
TYPES OF PROTECTIONISM (IMPORT)
Tariffs: a tax or duty that raises the price of imported products and an
expansion in domestic supply. For example, until recently, Mexico imposed
a 150% tariff on Brazilian chicken. The United States has an 11% import
tariff on imports of bicycles from the UK.
State Trading: State trading implies the taking over the entire forcing trade
by the government of the country. It make easier to control the imports of
the country by the government. This method also protects the home
industries.