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Fairness argument for protection |
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Fairness argument for protectionThe 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.Similar MatchesSafeguards protectionSafeguards protectionImport protection provided under the Safeguards Clause. Domestic distortions argument for protectionDomestic distortions argument for protectionSee second best argument. Infant industry protectionInfant industry protectionProtection 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). Foreign investment argument for protectionForeign investment argument for protectionThe use of protection to attract FDI from abroad. It does work, since much FDI has been motivated by firms trying to get behind a tariff wall to sell their products. In an otherwise nondistorted economy, however, the cost in terms of more expensive goods is higher than the benefit from additional capital. Environmental protection argument for a trade interventionEnvironmental protection argument for a trade interventionThe view that trade should be restricted in order to help the environment. Examples include embargos on imports made from endangered species, limits on imports produced by methods harmful to the atmosphere, and restrictions on investment into locations with lax environmental standards. This is usually a second-best argument. Further SuggestionsPolitical economy of protectionSelf-sufficiency argument for protection Content protection Protection Payment protection insurance Patriotism argument for protection Effective rate of protection National defense argument for protection Domestic content protection Nominal rate of protection Tariff protection Marine Mammal Protection Act Mortgage payment protection insurance (MPPI) loan protection policy protection applied Protectionism home responsibilities protection Exchange rate protection Balance of payments argument for protection Contingent protection Investor Protection Scheme Consumer Credit Protection Act of 1968 Second-best argument for protection Import protection Deposit Protection Scheme |
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