Sunday, March 8, 2009
Protectionism - developed Vs developing economies
Economix draws an ineresting distinction between protectionism in developing and developed countries. In the former, it takes the shape of import tariff barriers or even outright bans, while in the latter it is more likely through subsidies to domestic industries and non-tariff barriesr (labour, environment, phyto-sanitary conditions). And the bailouts makes it even more difficult to make the distinction between genuine assistance to distressed companies and subsidies that come in the way of trade.