Ecn 500 Cta Costs And Benefits Of Import Quotas

Non-tariff measuresNameInstitutional affiliationNon-tariff measuresIntroductionNon-tariff measures (NTMs) are policy measures, other than ordinary customs tariffs, that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both. Countries impose such measures to make locally produced product more attractive to the consumers compared to their imported counterparts. The policies can also be short-term measures to allow the local industries to grow and become competitive. Since the 1980s, the American automotive industry among many others has requested the government to protect it from foreign competition especially from Japanese companies. Measures taken included; imposing quantity restrictions on imports, foreign exchange intervention, subsidies and economic Sanctions. However, the affected companies also respond appropriately to the measures taken by the American government. This document will analyze how the government used the NTMs and whether they had higher cost or benefits. However, it is unanimously agreed that trade barriers have higher costs than benefits. Trade QuotasAn import quota is a protectionist trade restriction aimed at physical regulation of the quantity of a good that can be imported into a country in a given period of time. During