End Protectionism Essay

3513 Words Jan 17th, 2015 15 Pages
Daniel James
Kate Reed
English Comp
10 December 2014
End Protectionism.
Table of Contents

Section 1: Introduction---------------------------------------------------------------------------------- 3
Section 2: What is Protectionism?-------------------------------------------------------------------- 3-9
Section 3: Why does it occur? ------------------------------------------------------------------------- 9-10
Section 4: Arguments For ------------------------------------------------------------------------------10-13
Section 5: Conclusion------------------------------------------------------------------------------------13-15
Works
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The purpose of each of these is the same: to provide a leg up for domestic business. The difference lies in the way in which each goes about achieving this. (Clifton; Ikenson; Lee) First, a tariff. A tariff is a tax placed on an import. It has the two-fold effect of driving up the cost of production for the foreign firm and also providing government revenue.
Figure 1. A graph showing the effects of a tariff on the American Market for Steel. Above is a graph showing, for example, the American market for steel. The red and blue lines denote the Domestic Demand and Supply, respectively. The horizontal black lines are World Price (the price at which the foreign goods are able to be produced) and the World price as raised by the tariff levied by the US Trade Association. In actuality, according to Dan Ikenson in a Center for Trade Policies briefing titled, “Steel Trap”, “U.S. steel producers have been shielded from foreign competition by quotas, voluntary export restraints, minimum price undertakings, and hundreds of antidumping, countervailing duty, and safeguard measures,” (1) meaning that this graph only tells part of the story regarding government intervention in the market. For the sake of this example I will only focus on the tariffs ('countervailing duties'). In short, because the World Price is lower than the price at which domestic suppliers

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