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It can be argued that import restrictions benefits and protects domestic businesses, but at the same time, freed trade agreements between countries open up new markets for the businesses to expand to more freely. What is your take on the subject?
There is no exact answer to this question. It could be beneficial as well as detrimental depending upon domestic condition and government's industrial and economic policies. If the demand is not satisfied by the local industry, then it is beneficial and if the domestic prices are very high and monopolised by local manufacturers , it's also beneficial. But if manufacturing cost of local industry is higher, then import will be detrimental, as it will ruin the domestic industry. i am not in favour of import of finished goods. But if raw materials are not available in the local market, then loosning of import will be beneficial, since it will bring down the manufacturing cost.
Like anything, there can be diffreent effects for different sectors of the economy. Looseing restrictions may affect local manufacturing as traders may be able to source products from foreign suppliers at a cheaper price.
Less red-tape and restrictions could also result in a lowering of prices of products on the market, thus, increasing competition and competitive rates resulting in more disposable income for the consumer.There are long and short term effects. Restrictions may have been put in place for a specific reason, such as anti-dumping measures. There are many factors to take into consideration such as trade deficit / balance of trade, local productions and manufacturing and intenrational agreements.
Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced to reduce their prices from increased competition, and domesticconsumers are left paying higher prices as a result.
Thanks for invitation,
As a matter of fact, it has to be treated case by case, if these restrictions are applied to protect the domestic industries, or to avoid dumping for any special product / products, or to adjust / overcome some problems on the country's Balance of Payment, "especially which related to the "Balance of Trade", of course it will be for the benefit the economy.
