Balance of payments argument for protection

 

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Balance of payments argument for protection

A common reason for restricting imports, especially under fixed exchange rates, when a country is losing international reserves due to a trade deficit. It can be argued that this is a second best argument, since a devaluation could solve the problem without distorting the economy and therefore at smaller economic cost.



Similar Matches

Deposit Protection Scheme

Deposit Protection Scheme

A scheme set up to give limited financial protection to people with deposits in authorised banks which fail. Banks are authorised and supervised by the Financial Services Authority (FSA) and they are obliged to provide details of their deposit protection scheme and their claim procedures if requested by depositors. The FSA publishes a list of banks which are authorised under the 1987 Banking Act. The UK Deposit Protection Scheme covers 90% of a bank's total liability to a depositor subject to a set maximum.


Infant industry protection

Infant industry protection

Protection of a newly established domestic industry that is less productive than foreign producers. If productivity will rise with experience enough to pass Mill's and Bastable's tests, there is a second-best argument for protection. The term is very old, but a classic treatment may be found in Baldwin (1969).


Retirement Protection Act of 1994

Retirement Protection Act of 1994

Legislation designed to protect the pension benefits of workers and retirees by increasing required support of pension plans by employers.


Effective protection

Effective protection

The concept that the protection provided to an industry depends on the tariffs and other trade barriers on both its inputs and its outputs, since a tariff on inputs raises cost. Measured by the effective rate of protection.


Fairness argument for protection

Fairness argument for protection

The view that it is unfair to force domestic firms to compete with foreign firms that have an advantage, either in terms of low wages or due to foreign government policies. This misinterprets economic activity as a game, the purpose of which is to win, rather than as a means of using limited resources to satisfy human needs. See level playing field.


Further Suggestions

Contingent protection
Cultural argument for protection
court of protection
Endogenous protection
protection applied
Protectionism
National defense argument for protection
Call protection
Tariff protection
Downside Protection
Domestic content protection
Mortgage payment protection insurance (MPPI)
Administered protection
Protectionism
Effective rate of protection
Intellectual property protection
loan protection policy
Marine Mammal Protection Act
Noneconomic objectives argument for protection
Actual protection rate
Building Societies Investor Protection Scheme
Import protection
Consumer Credit Protection Act of 1968
Nominal rate of protection
Self-sufficiency argument for protection


 
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