Page 24 - FINAL CFA I SLIDES JUNE 2019 DAY 6

Session Unit 5:
19. Int. Trade & capital Flows, p136

LOS 19.e: Compare types of trade and capital restrictions and their economic implications., p.140

Some reasons for trade restrictions: Types of trade restrictions include, p 141-143:

• Infant industry. • Tariffs

• National security. • Quotas
• Protecting domestic jobs. • Export subsidies

• Protecting domestic industries • Minimum domestic content.
• Retaliation for foreign trade restrictions; • Voluntary export restraint.

• Government collection of tariffs; • Capital flow restrictions, p. 143
• Countering the effects of government subsidies

paid to foreign producers; and
• Preventing foreign exports at less than their cost

of production (dumping). Loss of consumer surplus

Economic impact of Trade Restrictions (who gains/ looses
at home between Producers and Consumer?), p.142

DWL DWL