Export from a European and a global perspective - Trade policies and the European Union - Protectionism

8 important questions on Export from a European and a global perspective - Trade policies and the European Union - Protectionism

What arguments are not permitted by the GATT when looking at protectionism?

  • The pauper-labour argument
  • The employment argument
  • The balance of payments argument
  • The reconstruction argument

What arguments are permitted by the GATT when looking at protectionism?

  • The infant-industry argument
  • The anti-dumping argument

What sorts of dumping are there?

  • Strategic dumping
  • Social price cutting
  • Subsidised dumping
  • Discrimination dumping
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When is dumping effective?

Only when markets are separate and there is elasticity of demand. Dumping tries to achieve short-term effects and leads to price cutting in the long term.

What does the the pauper-labour argument stand for?

Protecting domestic production against import of goods from low-wage countries.

What does the unemployment argument stand for?

Protecting or stimulating domestic employment.

What does the trading balance argument stand for?

Improving your country's trade balance.

What does the infant-industry argument stand for?

Protecting relative new industrial countries.

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