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Trade Restrictions and Economy Support

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Give three arguments for trade restrictions. Are there any arguments for trade restrictions that most economists would support? Discuss.

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The first argument for trade restrictions is that trade restrictions prevent dumping of goods in the local market. Dumping occurs when foreign producers sell goods at prices below their production cost to drive out local competition.

The second argument for trade restrictions is that these help new and infant industries. The argument is that the size of new industries is very small and there are diseconomies that prevent them from competing effectively with foreign producers.

The third argument is that the country should develop industries ...

Solution Summary

The solution provides a structured explanation of reasons that support trade restrictions . It also gives you the relevant references.