Tariffs And Trade Restrictions To Save Jobs

Want to read the rest of this paper? Join Essayworld today to view this entire essay and over 50,000 other term papers

competition. Tariffs are a monetary tax on each unit of an imported commodity. Quotas are a numerical limit on the annual quantity of particular imports. A more subtle form of protectionism is the minimum quality standard. In the generally rare cases in which the market cannot regulate product quality on its own, the government is justified in establishing such standards. However, this can be abused by requiring imports to meet higher and costlier standards than their domestic counterparts. Effectively, this places a tax on imports and gives an advantage to American producers. The North American Free Trade Agreement (NAFTA), the General Agreement on Tariffs and Trade (GATT), and other similar trade agreements have focused on reducing tariffs and quotas, but have left the issue of quality standards relatively untouched.
So why don't protective tariffs and quotas save American jobs? Let's approach the question step by step. Such restrictions restrict supply and drive up the ...

Get instant access to over 50,000 essays. Write better papers. Get better grades. Already a member? Login

CITE THIS PAGE: