Reasons why Protectionist Laws & Tariffs are Imposed on International Trade

There are several reasons why Protectionist Laws & Tariffs are Imposed on International Trade;

1. To correct balance of payment deficit

2. To protect infant industries

3. To generate revenue for the government

4. To discourage dumping

5. To prevent importation of harmful commodities

6. To protect importation of harmful substances

7. To check the consumption pattern of the country

8. It is also a strategy for income redistribution in order to bridge the gap between the rich and the poor

Evaluation Questions

1. Discuss the problems or difficulties encountered by international trade

2. Explain the law of comparative cost advantage