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Terms of trade argument |
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Terms of trade argumentSame as the optimal tariff argument, which works by restricting the quantity of trade in order to improve the terms of trade.Similar MatchesFairness 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. National defense argument for protectionNational defense argument for protectionThe argument that imports should be restricted in order to sustain a domestic industry so that it will be available in case of trade disruption due to war. This is a second best argument, since there are a variety of ways of providing for defense at lower economic cost, including production subsidies, mothballing, and stockpiling. 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. 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. 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 SuggestionsPatriotism argument for protectionCultural argument for protection Optimal tariff argument Monopoly argument Environmental protection argument for a trade intervention Revenue argument for a tariff Pauper labor argument Externalities argument for protection Self-sufficiency argument for protection Second-best argument for protection Domestic distortions argument for protection Infant industry argument Infant industry argument Income redistribution argument for a tariff Noneconomic objectives argument for protection Employment argument for protection Sunset industry argument Strategic trade policy argument for a tariff Balance of payments argument for protection |
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