(b) Discuss, with examples, how international trade protection may affect consumers andproducers in an economy and whether on balance protection can be justified
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- Thread Starter
- 21-02-2016 19:52
- 22-02-2016 12:55
It creates efficiency loss by distorting consumer & producer surplus but it creates tax revenue and (just only large countries which can influence the world price) terms of trade gain for importing country when price is driven up by the tariff protection.
Posted from TSR MobileLast edited by Nathan9087; 22-02-2016 at 13:25.