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Revenue argument for a tariff |
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Revenue argument for a tariffThe use of a tariff to raise revenue for the government. Many other kinds of tax cause smaller distortions and are therefore preferable to tariffs for this purpose. However, a tariff is one of the easier taxes to collect, and it is therefore common in the early stages of a country's development.Similar MatchesPauper labor argumentPauper 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. 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. Noneconomic objectives argument for protectionNoneconomic objectives argument for protectionThe view that a restriction on imports may serve a purpose outside of conventional economic models. Unless that purpose is itself the restriction of trade, then this is a second-best argument, since changes in output, consumption, etc. can be achieved at lower economic cost in other ways. Income redistribution argument for a tariffIncome redistribution argument for a tariffThe argument that tariffs should be used in order to redistribute income towards the poor. In a rich country, where unskilled labor is the scarce factor, this can make sense as explained in the Stolper-Samuelson Theorem, but it is a second-best argument. Sunset industry argumentSunset industry argumentThe argument, in contrast to the infant industry argument, that a mature industry should be provided protection, either to help it restore its competitiveness, or to cushion its exit from the economy. Further SuggestionsBalance of payments argument for protectionOptimal tariff argument Patriotism argument for protection Externalities argument for protection Labor standards argument for protection National defense argument for protection Cultural argument for protection Self-sufficiency argument for protection Labor standards argument for protection Second-best argument for protection Foreign investment argument for protection Infant industry argument Employment argument for protection Strategic trade policy argument for a tariff Fairness argument for protection Monopoly argument Infant industry argument Domestic distortions argument for protection Terms of trade argument |
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