Trade Protectionism - Government's Noneconomic rationales and outcome for trade intervention
4 important questions on Trade Protectionism - Government's Noneconomic rationales and outcome for trade intervention
What are the major non-economic rationales for trade intervention:
- Promoting acceptable practices abroad
- Maintaining or extending spheres or influences
- Preserving national culture
In protecting essential industries countries must:
- Consider costs and alternatives
- Consider political and economic consequences
Governments use trade to support their spheres of influence by:
- encouraging imports from countries that join a political alliance
- vote a preferred way within international bodies
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To preserve national culture, countries may:
- limit imports that may either conflict with or replace their dominant values
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