Page 28 - FINAL CFA SLIDES DECEMBER 2018 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