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

Mortgage payment protection insurance (MPPI)

Mortgage payment protection insurance (MPPI)

An MPPI policy pays your mortgage for you if you become unable to work for an extended period of time, as a result of redundancy, accident, sickness or disability. It should provide enough income to cover all your monthly mortgage expenses. If you have a repayment mortgage, this should be your capital and interest repayment and if you have an interest-only mortgage, the MPPI should cover your interest payment as well as your normal monthly contribution to the investment vehicle that will repay your loan.


Home responsibilities protection

Home responsibilities protection

A scheme which preserves your rights to a basic state pension during periods when you are caring for children, an elderly relative or other dependants.


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).


Tariff protection

Tariff protection

Protection provided by a tariff.


Effective rate of protection

Effective rate of protection

A measure of the protection provided to an industry by the entire structure of tariffs, taking into account the effects of tariffs on inputs as well as on outputs. Letting bij be the share of input i in the value of output j, the ERP of industry j is ERPj = (tj-Sibijtij)/(1-Sibij). Due to Corden (1966).


Further Suggestions

Securities Investor Protection Corporation
Consumer Credit Protection Act of 1968
Safeguards protection
Import protection
Administered protection
Downside Protection
Content protection
protection applied
Protection
court of protection
Second-best argument for protection
Actual protection rate
National defense argument for protection
Endogenous protection
Payment protection insurance
Contingent protection
Intellectual property protection
Retirement Protection Act of 1994
Environmental protection argument for a trade intervention
Foreign investment argument for protection
Patriotism argument for protection
Marine Mammal Protection Act
Domestic content protection
Fairness argument for protection
Building Societies Investor Protection Scheme


 
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