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Pauper labor argument |
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Pauper labor argumentThe view that a country loses by importing from another country that has low wages, presumably by lowering wages at home. This view ignores the fact that low wages are due to low productivity, and that the high-wage home country, with high productivity, will have comparative advantage in some products and will gain from trade.Similar MatchesSelf-sufficiency argument for protectionSelf-sufficiency argument for protectionThe view that a country is better off providing for its own needs than depending on imports. It may be based on fear that war or foreign governments will interrupt imports. This is a second-best argument, since many policies could provide for that contingency without sacrificing all the gains from trade. Fairness argument for protectionFairness 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. Infant industry argumentInfant industry argumentThe theoretical rationale for infant industry protection. Balance of payments argument for protectionBalance of payments argument for protectionA 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. Labor standards argument for protectionLabor standards argument for protectionThe view that trade restrictions (trade sanctions) should be used as a tool to improve labor standards, limiting imports, for example, from countries that do not enforce such labor rights as freedom of association and collective bargaining. Further SuggestionsLabor standards argument for protectionEnvironmental protection argument for a trade intervention Income redistribution argument for a tariff Terms of trade argument Monopoly argument Second-best argument for protection Noneconomic objectives argument for protection Strategic trade policy argument for a tariff Employment argument for protection National defense argument for protection Infant industry argument Externalities argument for protection Sunset industry argument Revenue argument for a tariff Domestic distortions argument for protection Optimal tariff argument Foreign investment argument for protection Patriotism argument for protection Cultural argument for protection |
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