Principles of Microeconomics / Unit 16 MIC 1510 short lesson, about 20 seconds
Three Forms of Protection
Captions available
The idea
Protectionism reduces imports in three forms: tariffs, taxes on imports; import quotas, numerical limits; and nontariff barriers, rules and paperwork that raise the cost of importing. All three raise the domestic price.
In practice
A rule of origin makes producers reroute the last stage to qualify.
Where people slip
A safety standard can restrict as effectively as a tariff unless it binds domestic goods too.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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