notes for free trade

Free trade	International trade left to its natural course without tariffs, quotas, or other restrictions.
For and against protectionsim	For- protects domestic employment Protect economy from low cost labour Protect infant industries Avoid over-specialization Strategic reasons Prevent dumping Protect product standards Raise gov revenue Correct balance of payment deficit Against- raise prices for consumers Less choice for consumers Decreased competition Inefecient use of world resources Hinder economic growth
Types of protectionism	Tar       Tarrifs- a tarrif is a tax put on imported goods causing a shift in supply curve of the world. U  Used as anti dumping.       Leads to loss of sconsumer surplus leading to loss of welfare      D  now produced by relatvly inefficient domestic farmer leading to a welfare loss
Subsidies	Amount of money paid to a firm       Leads to more wheet produced by domestic which leads to ineffeciency leading to loss of welfare      Indirectly leads to increase in taxes etc.
Quotas	Ad   A physical limit set on the numbers or value of goods that can be imported into a country       L  leads to loss of consumer surplus which leads to loss of welfare      ineffeciency
Math
Admin barriers	Dd red tape- admin red tape they have to pass leads to higher costs and slowness D     health and safety standards and eviromental standards- rstrict for the sake of standards but still need to keep up imports                                     embargos- an extreme qyota, a form of extreme politcal punishment
Nationilstic campeign	A ad A country might try to run marketing campeigns in order to encourage people to buy domestic