It May Be Demonstrated That Any Protectionist Policy, Which Effectively

question 41

Essay

It may be demonstrated that any protectionist policy, which effectively shifts real resources to import competing industries or sectors will harm export industries or sectors. This may, for example, happen by the strengthening U.S. dollar in the foreign exchange market. Would you propose therefore that export industries lobby against protectionism in International Trade Commission proceedings?
What of consumer advocates?
Discuss the pros and the problems of such a suggestion.

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Definitions:

GDP Deflator

A gauge for the cost levels of all newly produced, domestic, consumable goods and services in a national economy.

CPI

Consumer Price Index; a measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.

CPI

Short for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Rookie Salary

The initial compensation package awarded to a professional athlete in their first year or season of play.