im not really sure on this.. i have been tought to use a subsady if i am asked an example on direct trade policy to restiric trade but i am thinking for an essay it would be easier to use tariff... surely a tariff is direct trade policy...
is a tariff a direct trade policy restriction? (1 Viewer)
- Thread starter vmoore
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don't say quotas, last quota was scrapped in 2001. and tariffs lead to all sorts of problems, inefficiency and productivity in the economy because industries are protected from imports, so there is no competition - also pushes prices higher and effects the NO. 1 goal of price stability. tariffs being put in place also sometimes causes retaliation from our trading partners and they put up tariffs too... meaning that components for locally made goods cost more for us, therefore higher costs of production for firms, therefore inflation.
subsidies also result in reliance and uncompetitiveness but are probably better to talk about and more likely to be put in place than new tariffs, when trade is being liberated more and more recently.
subsidies also result in reliance and uncompetitiveness but are probably better to talk about and more likely to be put in place than new tariffs, when trade is being liberated more and more recently.