4.3 Arguments For And Against Trade Control/Protection

Question 1

Arguments FOR trade protection

Answer 1

protection of infant industries
national security
health, safety and environmental standards
anti-dumping
unfair competition
balance of payments correction
government revenue
protection of jobs
Economically least developed country (ELDC) diversification

Question 2

Arguments AGAINST trade barriers

Answer 2

• misallocation of resources
• retaliation
• increased costs
• higher prices
• less choice
• domestic firms lack incentive to become more efficient
• reduced export competitiveness