Respuesta :
trade "deadweight loss" Consumers suffer from higher costs as a result of trade restrictions including tariffs, quotas, and nontariff barriers, while import-competing producers gain.
Why does protectionism reduce trade value in a deadweight manner?
Furthermore, there is deadweight loss since consumers lose more as a result of tariffs than producers do. Additionally, since redistributions brought on by tariffs frequently result in vested interests, harm frequently continues. Additionally, widespread protectionism may lead to retaliation, which raises prices in other areas.
What causes a loss of deadweight?
Deadweight losses are generally caused by an inefficient distribution of resources, which is brought about by a variety of interventions, including price floors, ceilings, monopolies, and levies. These elements cause a product's price to not be appropriately reflected, which results in products.
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