Protectionism in the U.S Term Paper Example | Topics and Well Written Essays - 1250 words

Protectionism in the U.S - Term Paper Example A trade barrier is a general expression that illustrates any government policy or regulation that limits international trade, the barriers can take many forms, including: Import duties Import licenses Export licenses Quotas Tariffs Subsidies Tariffs, which are taxes on trade in of supplies into a country or region, are among the oldest forms of government intervention in financial activity. They are implemented for two clear economic purposes. First, they grant revenue for the government. Second, they get better economic returns to firms and suppliers of resources to a domestic industry that faces competition from foreign imports. Tariffs are broadly used to protect domestic producers’ incomes from foreign competition. This fortification comes at an economic cost to domestic consumers who pay higher prices for import challenging goods and to the economy as a whole through the inefficient allocation of resources to the import-competing domestic industry. Therefore, since 1948, when average tariffs on manufactured goods surpass 30 percent in most developed economies, those economies have sought to reduce tariffs on manufactured goods through several rounds of discussions under the General Agreement on Tariffs Trade . â€Å"Non-tariff barriers include "non-science based sanitary and phytosanitary (SPS) standards, customs procedures, government monopolies and lack of transparency in regulations†. Some non-tariff trade barriers are mainly acceptable in very partial circumstances when they are measured necessary to keep health, safety, or sanitation. Non-tariff barriers to trade can be: State subsidies, procurement, trading, and ownership. National regulations on health, safety, employment. Product Classification. Quotas. Foreign Exchange: controls and multiplicity. Over elaborate or inadequate infrastructure. 'Buy national' policy. Intellectual property laws (patents and copyrights). Bribery and corruption. Unfair customs procedures.