Arguments for a country wishing to restrict free trade, Business Management

Assignment Help:

Briefly explain the main arguments for a country wishing to restrict free trade.

Protection

There may be a require to protect fledgling industries which would not be able to compete on an equal footing with foreign competitors. These industries typically have yet to achieve economies of scale in production and possibly do not yet enjoy the factors of production that foreign competitors do. (e.g. a well trained labour force , simple of finance etc.)

Prevent 'dumping'

Protection may help avoid a 'dumping' of excess goods at unrealistically low prices by foreign companies which would impact unfairly on home producers.

Overcoming spoiling tactics of foreign competitors

Protection may help stop 'loss leader' pricing of goods by foreign competitors in order to unfairly damage local suppliers and gain market share.

Protect national cultural identity

A government may feel the requirements to protect its national cultural individuality against what it views as undesirable values and influences. As a result it may restrict free trade. (For instance, certain multinational operations might be discouraged if it is feared that there would be suppression by (say) undue American values being imposed on a proud indigenous culture founded on local, historical and religious heritages).

Ethical or moral grounds

A government might be feel a need to safeguard home consumers against harmful or distasteful imports (e.g. objects made of ivory, rare bird egg collections, 'date rape' drugs etc.)  

 


Related Discussions:- Arguments for a country wishing to restrict free trade

Describe briefly two online advertising methods, QUESTION (a) Describe ...

QUESTION (a) Describe briefly five main features of an effective e-Business website. (b) Explain the terms intranet and extranet, and their importance in an e-Business compa

Recent macro developments, In 2006, European economy performed well with an...

In 2006, European economy performed well with an economic growth of 3%, which was the highest since 2000. This is a sign that the economy is on the road to recovery and in fact mos

How is grievance defined, How is Grievance defined? A Grievance may be ...

How is Grievance defined? A Grievance may be described as any feeling of dissatisfaction or discontent, whether expressed or not expressed and whether is valid or not, occur ou

Three phases of customer relationship management, QUESTION a) Briefly e...

QUESTION a) Briefly explain the following two methods of e-procurement: i. Reverse Auctions ii. Industrial Malls b) Elaborate on three characteristics essential for e-

Organisational planning tool, Organisational Planning tool a) Opportuni...

Organisational Planning tool a) Opportunity cost refers cost calculated in terms of the next best alternative choice that is predetermined when a decision is made. In this case

Predictive maintenance, This is a modern concept having excellent future...

This is a modern concept having excellent future prospects. Maintenance is more relevant with palnt and machinery of mechanical design having more number of moving parts.

Managing public and private welfare institutions, QUESTION (a) Managing...

QUESTION (a) Managing Public and Private Welfare Institutions has assumed major importance in the modern era. Discuss this statement giving suitable examples. (b) Welfare In

What is bop, It is known as Balance of payments - an economic term. (BOP) c...

It is known as Balance of payments - an economic term. (BOP) calculates the payments that flow among any individual country and all other countries. It is used to summarize all int

Ricardian model and heckscher-ohlin model, 1. Wage ratios must lie in betwe...

1. Wage ratios must lie in between the inter-country productivity ratios. 2. Large countries are always less specialized. 3. Low wage countries have bigger gains from trade.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd