Trade Barriers and Protectionism

Farrokh Langdana and Peter T. Murphy
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Farrokh Langdana: Rutgers Business School

Chapter Chapter 6 in International Trade and Global Macropolicy, 2014, pp 75-116 from Springer

Abstract: Abstract In Chapter 6 we leave the clean world of free trade and dive into trade barriers in their many incarnations, including tariffs, quotas, hassle-factors, and export subsidies. We see how tariffs harm overall welfare in both the importing and exporting countries. As bad as tariffs are, we see that quotas are even worse. Strategic trade - the protection of infant industries and champion industries - is explored at some length. Any distortive policy implemented by Country A is certain to face retaliation by Country B in the form of dumping claims and countervailing duties (CVDs). We see how these exacerbate the already bad effects of the initial barriers imposed by Country A. Finally, we take on two huge challenges to the notion of the beneficial nature of free trade: the Immiserization hypothesis, and Paul Samuelson's attack on free trade.

Keywords: Free Trade; Comparative Advantage; World Trade Organization; Indifference Curve; Export Subsidy (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-1-4614-1635-7_6

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DOI: 10.1007/978-1-4614-1635-7_6

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