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Chapter 34: Q. 12. (page 832)

What are the conditions under which a country may use the unsafe products argument to block imports?

Short Answer

Expert verified

Below are the conditions for which a country may use the unsafe products argument to block imports.

Step by step solution

01

Step 1. Meaning of import.

It is a good or service bought in one country that was produced in another country.

02

Step 2. Following are the conditions under which a country may use the unsafe products argument to block imports.

a) When it is the matter of environmental concern.

b) When it is the issues of safety and security.

c) The protectionist tools to infant industries as small domestic industries need to be temporarily nurtured and protected from foreign competition for a time so that they can grow into strong competitors.

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Most popular questions from this chapter

Why might the unsafe consumer products argument be a more effective strategy (from the perspective of the importing country) than using tariffs or quotas to restrict imports?

How can governments identify good candidates for infant industry protection? Can you suggest some key characteristics of good candidates? Why are industries like computers not good candidates for infant industry protection?

Trade has income distribution effects. For example, suppose that because of a government-negotiated reduction in trade barriers, trade between Germany and the Czech Republic increases. Germany sells house paint to the Czech Republic. The Czech Republic sells alarm clocks to Germany. Would you expect this pattern of trade to increase or decrease jobs and wages in the paint industry in Germany? The alarm clock industry in Germany? The paint industry in Czech Republic? The alarm clock industry in Czech Republic? What has to happen for there to be no increase in total unemployment in both countries?

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Is international trade likely to have roughly the same effect on the number of jobs in each individual industry?
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