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Protectionism vs. Free Trade. Motivation. “Protectionism is the ally of isolationism, and isolationism is the Dracula of American foreign policy.” William G Hyland. Protectionism. The idea that we should limit trade to protect our self-interest. Tariffs. A tax on imports.
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Motivation • “Protectionism is the ally of isolationism, and isolationism is the Dracula of American foreign policy.” • William G Hyland
Protectionism • The idea that we should limit trade to protect our self-interest.
Tariffs • A tax on imports.
Protective Tariffs • Tariffs used to limit international trade in order to protect a country’s own interest. • Usually an elastic demanded product.
Revenue Tariffs • Tariffs that are used primarily to raise money for the government. • Usually an inelastic demanded product.
Quota • A limit on the number of imports and exports.
Embargoes • When a country halts the export and import of a product or a group of products to or from another country.
Standards • A requirement that foreign goods meet a certain stiff requirement.
Subsidy • A payment made by the government to encourage some activity (opposite of a tax).
Price Ramification • Graphing the use of protectionism.